Question
Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during the year: Cost Retail Inventory,
Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during the year:
| Cost | Retail | |
|---|---|---|
| Inventory, January 1 | $28,400 | $40,200 |
| Purchases | 65,200 | 100,000 |
| Markups (net) | 1,900 | |
| Markdowns (net) | 400 | |
| Sales | 80,000 |
Required:
Question Content Area
1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
| blank | Cost | Retail | |
|---|---|---|---|
| Beginning inventoryCashEnding inventoryGoods available for saleMarkdowns (net)PurchasesPurchases | blank | $Purchases | $Purchases |
| Add: Markdowns (net)Add: Markups (net)Add: SalesLess: Markdowns (net)Less: Markups (net)Less: SalesAdd: Markdowns (net) | blank | Add: Markdowns (net) | Add: Markdowns (net) |
| Add: Markdowns (net)Add: Markups (net)Add: SalesLess: Markdowns (net)Less: Markups (net)Less: SalesLess: Markdowns (net) | blank | Less: Markdowns (net) | Less: Markdowns (net) |
| blank | blank | $fill in the blank 409b72f9102f037_10 | fill in the blank 409b72f9102f037_11 |
| Cost-to-retail ratio: | fill in the blank 409b72f9102f037_12 | blank | blank |
| Beginning inventoryCashEnding inventoryGoods available for saleMarkdowns (net)PurchasesGoods available for sale | blank | Goods available for sale | Goods available for sale |
| Beginning inventoryCashEnding inventoryGoods available for saleMarkdowns (net)PurchasesEnding inventory | blank | $Ending inventory | $Ending inventory |
| Add: Markdowns (net)Add: Markups (net)Add: SalesLess: Markdowns (net)Less: Markups (net)Less: SalesAdd: Sales | blank | Add: Sales | Add: Sales |
| Beginning inventoryCashEnding inventoryGoods available for saleMarkdowns (net)PurchasesEnding inventory | blank | $Ending inventory | $Ending inventory |
Question Content Area
2. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Average cost. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
| blank | Cost | Retail | |
|---|---|---|---|
| Beginning inventoryCashEnding inventoryGoods available for saleMarkdowns (net)Purchases | blank | $- Select - | $- Select - |
| Beginning inventoryCashEnding inventoryGoods available for saleMarkdowns (net)Purchases | blank | - Select - | - Select - |
| Add: Markdowns (net)Add: Markups (net)Add: SalesLess: Markdowns (net)Less: Markups (net)Less: Sales | blank | - Select - | - Select - |
| Add: Markdowns (net)Add: Markups (net)Add: SalesLess: Markdowns (net)Less: Markups (net)Less: Sales | blank | - Select - | - Select - |
| blank | blank | $fill in the blank b2fe0bf9602af82_13 | $fill in the blank b2fe0bf9602af82_14 |
| Cost-to-retail ratio | fill in the blank b2fe0bf9602af82_15 | blank | blank |
| Add: Markdowns (net)Add: Markups (net)Add: SalesLess: Markdowns (net)Less: Markups (net)Less: Sales | blank | - Select - | - Select - |
| Beginning inventoryCashEnding inventoryGoods available for saleMarkdowns (net)Purchases | blank | $- Select - | $- Select - |
Question Content Area
3. Compute the ending inventory by the retail inventory method for the following cost flow assumption: LIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
| blank | Cost | Retail | |
|---|---|---|---|
| Beginning inventoryCashEnding inventoryGoods available for saleMarkups (net)Purchases | blank | $- Select - | $- Select - |
| Cost-to-retail ratio | fill in the blank 139dfef3a06c026_4 | ||
| Beginning inventoryCashEnding inventoryGoods available for saleMarkups (net)Purchases | blank | - Select - | - Select - |
| Add: Markdowns (net)Add: Markups (net)Add: SalesLess: Markdowns (net)Less: Markups (net)Less: Sales | blank | - Select - | - Select - |
| Add: Markdowns (net)Add: Markups (net)Add: SalesLess: Markdowns (net)Less: Markups (net)Less: Sales | blank | - Select - | - Select - |
| Beginning inventoryCashEnding inventoryGoods available for saleMarkups (net)Purchases | blank | $- Select - | $- Select - |
| Cost-to-retail ratio | fill in the blank 139dfef3a06c026_17 | blank | blank |
| Add: Markdowns (net)Add: Markups (net)Add: SalesLess: Markdowns (net)Less: Markups (net)Less: Sales | blank | - Select - | - Select - |
| Beginning inventoryCashEnding inventoryGoods available for saleMarkups (net)Purchases | blank | $- Select - | $- Select - |
Question Content Area
4. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Lower of cost or market (based on average cost). Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
| blank | Cost | Retail | |
|---|---|---|---|
| Beginning inventoryCashEnding inventoryGoods available for saleMarkups (net)Purchases | blank | $- Select - | $- Select - |
| Beginning inventoryCashEnding inventoryGoods available for saleMarkups (net)Purchases | blank | - Select - | - Select - |
| Add: Markdowns (net)Add: Markups (net)Add: SalesLess: Markdowns (net)Less: Markups (net)Less: Sales | blank | - Select - | - Select - |
| blank | blank | $fill in the blank a38561fe705f04e_10 | $fill in the blank a38561fe705f04e_11 |
| Cost-to-retail ratio | fill in the blank a38561fe705f04e_12 | blank | blank |
| Add: Markdowns (net)Add: Markups (net)Less: Markdowns (net)Less: Markups (net) | blank | - Select - | - Select - |
| Add: Markdowns (net)Add: Markups (net)Add: SalesLess: Markdowns (net)Less: Markups (net)Less: Sales | blank | - Select - | - Select - |
| Beginning inventoryCashEnding inventoryGoods available for saleMarkups (net)Purchases | blank | $- Select - | $- Select - |
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The Theories Of Audit Expectations And The Expectations Gap
Authors: Ecaterina Volosin
1st Edition
3640192311, 978-3640192311
