Question
11. Cloverdale, Inc., uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations: Cost Retail Beginning inventory
11. Cloverdale, Inc., uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations:
Cost | Retail | |||||
Beginning inventory and purchases | $ | 324,000 | $ | 551,000 | ||
Net markups | 49,000 | |||||
Net markdowns | 39,000 | |||||
Net sales | 518,000 | |||||
What amount should be reported as cost of goods sold for the year?
a. $299,166.
b $298,715.
c $300,780.
12.
Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:
Cost | Retail | |||||
Beginning inventory | $ | 62,000 | $ | 79,000 | ||
Net purchases | 170,000 | 247,000 | ||||
Net markups | 38,000 | |||||
Net markdowns | 51,000 | |||||
Net sales | 236,000 | |||||
The conventional cost-to-retail percentage (rounded) is:
Multiple Choice
a. 63.7%.
b. 84.7%.
c. 74.1%.
d. 71.2%.
13.
Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:
Cost | Retail | |||||
Beginning inventory | $ | 44,000 | $ | 70,000 | ||
Net purchases | 157,000 | 210,000 | ||||
Net markups | 20,000 | |||||
Net markdowns | 35,000 | |||||
Net sales | 222,000 | |||||
To the nearest thousand, estimated ending inventory using the conventional retail method is (Do not round intermediate calculations):
Multiple Choice
a. $32,000.
b. $28,000.
c. $34,000.
d, $29,000.
14.
Clarabell Inc. uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:
Cost | Retail | |||||
Beginning inventory | $ | 107,000 | $ | 203,000 | ||
Net purchases | 426,000 | 727,000 | ||||
Net markups | 55,000 | |||||
Net markdowns | 21,000 | |||||
Net sales | 697,000 | |||||
The conventional cost-to-retail percentage (rounded) is:
Multiple Choice
a. 61.3%.
b. 54.2%.
c. 89.8%.
d. 54.1%.
15.
Clarabell Inc. uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:
Cost | Retail | |||||
Beginning inventory | $ | 127,000 | $ | 206,000 | ||
Net purchases | 432,000 | 733,000 | ||||
Net markups | 58,000 | |||||
Net markdowns | 24,000 | |||||
Net sales | 700,000 | |||||
To the nearest thousand, estimated ending inventory using the conventional retail method is: (Do not round intermediate calculations.)
Multiple Choice
a. $153,000.
b. $169,000.
c. $175,000.
d. $133,000.
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