Question
Canadian Accounting: Gillespie Corp. is preparing the financial statements at its fiscal year end, December 31, 20x2. The following information is available: At Cost At
Canadian Accounting:
Gillespie Corp. is preparing the financial statements at its fiscal year end, December 31, 20x2. The following information is available:
At Cost | At Retail | |
Inventory, January 1, 20x1 ........................ | $ 208,500 | $ 465,300 |
Markdowns ................................................ | 117,500 | |
Markups ..................................................... | 177,500 | |
Markdown cancellations ............................ | 55,000 | |
Markup cancellations................................. | 22,500 | |
Purchases ................................................... | 603,000 | 1,324,350 |
Sales ........................................................... | 1,450,000 | |
Purchases returns and allowances.............. | 12,875 | 30,150 |
Sales returns and allowances ..................... | 22,500 |
Required:
Calculate the ending inventory at cost at December 31, 20x2, using the retail method that approximates lower of average cost and market. Your solution should be in good form with amounts clearly labelled. Carry the cost ratio to two decimals, e.g., 12.34%.
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