Sherrie's Shoes Uses the FIFO Retail Inventory Method to Determine

question 52

Multiple Choice

Sherrie's Shoes uses the FIFO retail inventory method to determine its ending inventory.The accounting records for Sherrie's Shoes contained the following information: $\begin{array}{lll}&\text { Cost }&\text { Retail }\\\text { Purchases } & \$ 242,000 & \$ 348,830 \\\text { Sales } & & 394,000 \\\text { Sales returns } & & 5,076 \\\text { Beginning inventory } & 60,500 & 107,294 \\\text { Net markups } & & 32,800 \\\text { Net markdowns } & & 12,000\end{array}$ The freight-in charges for the merchandise were $7, 500.What is the cost of ending inventory for Sherrie's Shoes?

• A)$49, 280
• B)$55, 792
• C)$57, 200
• D)$59, 400

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Definitions:

Non-necessary Items

Products or services deemed not essential for basic living and functioning.

Gifts

Voluntary transfers of property or funds to another party without expecting anything in return.

Minor

A person under the legal age of adulthood, which varies by country but is commonly 18 years old.

Intoxicated

The state of being under the influence of alcohol or drugs to a degree that significantly impairs one's physical and cognitive functions.