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Could you help me solve the ending inventory at cost and give some formulas? Retail Inventory Method EKC Company uses the retail inventory method. The
Could you help me solve the ending inventory at cost and give some formulas?
Retail Inventory Method EKC Company uses the retail inventory method. The following information for 2019 is available: Cost Retail Cost Retail Inventory, January 1 Purchases (gross price) $100,000 $180,000 Markup cancellations 320,000 600,000 Markdowns $ 12,000 15,000 Purchases discounts taken 6,000 Markdown cancellations 4,000 16,000 Net Sales 580,000 Freight-in Additional markups 60,000 2. Compute the cost of the ending inventory under the average cost method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar. EKC COMPANY Calculation of ending inventory by retail inventory method Average Cost For the year 2019 Cost Retail Beginning inventory $ 100,000 180,000 Purchases 320,000 600,000 Less: Purchases discounts taken -6,000 Freight-in 16,000 Net additional markups 48,000 Net markdowns -11,000 430,000 817,000 Less: Net sales -580,000 Ending inventory at retail 237,000 Ending inventory at cost 100,000Step by Step Solution
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