Question
(6) Gross Profit Method Kay's Beauty Supply uses the gross profit method to estimate the cost of ending inventory for in-house interim financial statements. Based
(6) Gross Profit Method
Kay's Beauty Supply uses the gross profit method to estimate the cost of ending inventory for in-house interim financial statements. Based on the following information for March, calculate Kay's' ending inventory at March 31.
| Cost of goods available for sale | $125,000 |
| Net sales for March | $80,000 |
| Estimated historical gross profit rate on net sales | 35% |
$
(7) Retail Inventory Method
Uncle Butch's Hunting Supply Shop reports the following information related to inventory:
| Cost | Retail | |
| Beginning inventory | $ 35,000 | $ 92,000 |
| Purchases | 75,000 | 200,000 |
| Net additional markups | 15,000 | |
| Net markdowns | (22,000) | |
| Goods available for sale | $110,000 | $ 285,000 |
| Sales | (178,000) | |
| Ending inventory at retail | $ 107,000 |
Calculate Uncle Butch's' ending inventory using the retail inventory method under the FIFO cost flow assumption. Round the cost-to-retail ratio to 3 decimal places.
$
(8) Retail Inventory Method
Uncle Butch's Hunting Supply Shop reports the following information related to inventory:
| Cost | Retail | |
| Beginning inventory | $ 35,000 | $ 92,000 |
| Purchases | 75,000 | 200,000 |
| Net additional markups | 15,000 | |
| Net markdowns | (22,000) | |
| Goods available for sale | $110,000 | $ 285,000 |
| Sales | (178,000) | |
| Ending inventory at retail | $ 107,000 |
Calculate Uncle Butch's Hunting Supply Shop's ending inventory using the retail inventory method under the average cost assumption. Round the cost-to-retail ratio to 3 decimal places.
$
(9) Retail Inventory Method
Uncle Butch's Hunting Supply Shop reports the following information related to inventory:
| Cost | Retail | |
| Beginning inventory | $ 35,000 | $ 92,000 |
| Purchases | 75,000 | 200,000 |
| Net additional markups | 15,000 | |
| Net markdowns | (22,000) | |
| Goods available for sale | $110,000 | $ 285,000 |
| Sales | (178,000) | |
| Ending inventory at retail | $ 107,000 |
Calculate Uncle Butch's Hunting Supply Shop's ending inventory using the retail inventory method under the LIFO cost flow assumption. Round the cost-to-retail ratio to 3 decimal places.
$
(10)
Retail Inventory Method
Uncle Butch's Hunting Supply Shop reports the following information related to inventory:
| Cost | Retail | |
| Beginning inventory | $ 35,000 | $ 92,000 |
| Purchases | 75,000 | 200,000 |
| Net additional markups | 15,000 | |
| Net markdowns | (22,000) | |
| Goods available for sale | $110,000 | $ 285,000 |
| Sales | (178,000) | |
| Ending inventory at retail | $ 107,000 |
Calculate Uncle Butch's Hunting Supply Shop's ending inventory using the retail inventory method under the lower of average cost or market assumption. Round the cost-to-retail ratio to 3 decimal places.
$
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Enterprise Compliance Risk Management An Essential Toolkit For Banks And Financial Services
Authors: Saloni Ramakrishna
1st Edition
1118550285, 978-1118550281
