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