Data below for the year ended December 31, 2011, relates to Houdini Inc. Houdini started business January 1, 2011, and uses the LIFO retail method to estimate ending inventory.

Data below for the year ended December 31, 2011, relates to Houdini Inc. Houdini started business January 1, 2011, and uses the LIFO retail method to estimate ending inventory.



(cost, retail)
beginning inventory: ( 66,000; 104,000)
net purchases: (280,000; 420,000)
net markups: (0; 20,000)
net markdowns: (0; 40,000)
net sales: (0; 375,000)

Estimated ending inventory at cost is:



A. $90,720.
B. $83,500.
C. $91,600.
D. None of the above is correct.


Answer: B. $83,500.


Learn More :