Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. huddell company, which is both a wholesaler and re

Huddell Company, which is both a wholesaler and retailer, purchases merchandise from various suppliers. The...

90.2K

Verified Solution

Question

Accounting

Huddell Company, which is both a wholesaler and retailer, purchases merchandise from various suppliers. The dollar-value LIFO method is used for the wholesale inventors. Huddell determines the estimated cost of its retail ending inventories using the conventional retail inventory method, which approximates lower average cost or market.

1. a. What are the advantages of using the dollar-value LIFO method A opposed to the traditional LIFO method?

b. How does the application of the dollar-value LIFO method differ from the application of the traditional LIFO method?

2. a. In the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending inventories, how should Huddell use: Net Markups? Net Markdowns?

b. Why does Huddell's retail inventory mehod approximate lower of average cost or market?

"Thank You"

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

In September 2008, at the age of 35, Haile Gebrselassie, won the Berlin Marathon with a...

Medical Sciences
1.2K views

Explain the difference between the different types of vessels in the body, including their characteristics.

Medical Sciences
1.2K views

Indicate whether the following statements are characteristic of the sympathetic or parasympathetic nervous system: Causes heart rate...

Physics
1.2K views

A motorcycle is following a car that is traveling at constant speed on a straight highway....

Economics
1.2K views

Consider the two investments shown below, only one of which can be chosen. They are one-shot...

Basic Math
1.2K views

Supply a valid technology formula for the given function.2^-5x24-5*x2^(-5*x)2^x-5(2^-5)*x

Statistics
1.2K views

Determine whether the study is an experiment or an observational study and then idently a...

Algebra
1.2K views

Homework 1 Simplify the expression 2 3x 3 3 x 10 by distributing and combining...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] ...

Accounting
1.2K views

Winnipeg Co. purchased 8,000 shares of Bittner Company's common shares on January 1, 2006 for...

Accounting
1.2K views

During the most recent fiscal period, Karson Company had sales of $80,000. Variable costs are...

Finance
1.2K views

You are buying a bond at a quoted price of $972. The bond has a...