Question
10 The following data are obtained from DK Stores Inc.s financial records: 2021 Cost Retail Beginning Inventory $75,600 $126,000 Purchases 176,000 244,000 Purchases discount 1,130
10
The following data are obtained from DK Stores Inc.s financial records:
|
| 2021 | |
|
| Cost | Retail |
| Beginning Inventory | $75,600 | $126,000 |
| Purchases | 176,000 | 244,000 |
| Purchases discount | 1,130 |
|
| Net markups |
| 9,500 |
| Net markdowns |
| 10,625 |
| Normal spoilage |
| 1,200 |
| Sales to customers |
| 215,000 |
| Sales to employees (after 40% employee discounts) |
| 9,705 |
| Price index | 1.05 | |
Price indices are based on January 1, 2021 which is the base year.
Suppose DK uses the average cost retail inventory method to account for its inventory. What is the current period cost-to-retail % (rounded to the nearest 0.1%)?
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Financial Accounting A Course For All Majors
Authors: David W. OBryan
1st Edition
1617350958, 978-1617350955
