acct 212-EKC Company uses the retail inventory method.
Retail Inventory MethodEKC Company uses the retail inventory method. The following information for 2016 is available:CostRetailCostRetailInventory, January 1$100,000$180,000Markup cancellations—$ 12,000Purchases (gross price)320,000600,000Markdowns—15,000Purchases discounts taken6,000—Markdown cancellations—4,000Freight-in16,000—Net Sales—580,000Additional markups—60,0001. Compute the cost of the ending inventory under the FIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.2. Compute the cost of the ending inventory under the average cost method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.3. Compute the cost of the ending inventory under the LIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar4. Compute the cost of the ending inventory under the lower of cost or market method (based on average cost). Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.
