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Exercise 9-14 (Algo) Conventional retail method [LO9-3] Campbell Corporation uses the retail method to value its inventory. The following information is available for the year
Exercise 9-14 (Algo) Conventional retail method [LO9-3] Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 $340,000 $295,000 Purchases 669,000 960,000 Freight-in 23,000 Net markups 35,000 Net markdowns 5,500 Net sales 950,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Cost Retail Cost-to-Retail Ratio $ S Beginning inventory Purchases Freight-in Net markups 340,000 669,000 23,000 295,000 960,000 35,000 1,290,000 (5,500) 1,284,500 Net markdowns Goods available for sale 1,032,000 Cost-to-retail percentage % Net sales (950,000) 334,500 $ Estimated ending inventory at retail Estimated ending inventory at cost
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