Retail Inventory Method
Harmes Company is a clothing store that uses the retail
inventory method. The following information relates to its
operations during 2016:
Cost
Retail
Inventory, January 1
$28,800
$41,500
Purchases
66,300
104,100
Markups (net)
—
1,700
Markdowns (net)
—
700
Sales
—
82,300
Required:
1. Compute the ending inventory by the retail inventory method
for the following cost flow assumption: FIFO. Round the
cost-to-retail ratio to three decimal places. If necessary, round
dollar amounts to the nearest whole...