USA: +1 725-224-8795 
Sign in
Harvey’s Junk Jewelry started business January 1, 2016, and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2016:
| Cost | Retail | |
| Beginning inventory | $15,000 | $23,000 |
| Purchases | 49,000 | 78,000 |
| Freight-in | 2,500 | |
| Purchase returns | 1,700 | 2,600 |
| Net markups | 2,000 | |
| Net markdowns | 4,100 | |
| Net sales | 70,600 | |
| Employee discounts | 700 |
The denominator for the current period’s cost-to-retail percentage is:
Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: Harvey's Junk Jewelry started business January 1, 2016, and uses the LIFO retail method to estimate ending inv…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS $13/PAGE
$96,300.
$73,300.
$101,000.
$81,500.
Expert Answer
| Cost | Retail | |
| Beginning inventory | 15000 | 23000 |
| Plus: Purchases | 49000 | 78000 |
| Freight-in | 2500 | |
| Less: Purchases returns | -1700 | -2600 |
| Plus: Net markups | 2000 | |
| Less: Net markdowns | -4100 | |
| Goods available for sale (excluding beginning inventory) | 49800 | 73300 |
| Option 2 is correct |
