ABC Company uses the retail inventory method to value its inventory for financial reporting purposes....
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Accounting
ABC Company uses the retail inventory method to value its inventory for financial reporting purposes. The company compiled the following cost and retail data for 20X1.
| Cost | Retail | |
| Beginning Inventory | 7,000,000 | 10,000,000 |
| Purchases | 12,800,000 | 15,000,000 |
| Net Markups | 2,000,000 | |
| Net Markdowns | 1,000,000 | |
| Net Sales | 12,000,000 |
3) If ABC wishes to approximate LIFO assuming price levels have remained stable, determine the best estimate.
4) If ABC wishes to approximate LIFO assuming price levels have increased 12% since the beginning base level, determine the best estimate.
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