Question
A retailer has beginning monthly inventory valued at $100,000 at retail and $61,000 at cost. Net purchases for the month are $190,000 at retail and
A retailer has beginning monthly inventory valued at $100,000 at retail and $61,000 at cost. Net purchases for the month are $190,000 at retail and $115,000 at cost. Transportation charges are $10,5000. Sales are $225,000. Markdowns and discounts equal $30,000. A physical inventory at the end of the month shows merchandise valued at $15,000 (retail) on hand. Compute the following:
A: Total merchandise available for sale-at cost and at retail
B: Cost complement
C: Ending retail book value of inventory
D: Stock shortages
E: Adjusted ending retail book value
F: Gross profit
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