Question
PLEASE explain how to get the answer Retail Inventory Method Turner Corporation uses the retail inventory method. The following information relates to 2019: Cost Retail
PLEASE explain how to get the answer
Retail Inventory Method
Turner Corporation uses the retail inventory method. The following information relates to 2019:
| Cost | Retail | Cost | Retail | |||
| Inventory, January 1 | $28,000 | $44,000 | Additional markups | $36,800 | ||
| Purchases (gross price) | 140,000 | 190,000 | Markup cancellations | 7,360 | ||
| Purchases discounts taken | 3,000 | Markdowns | 14,000 | |||
| Purchases returns | 6,000 | 9,000 | Markdown cancellations | 2,100 | ||
| Freight-in | 20,000 | Net Sales | 180,000 | |||
| Employee discounts | 3,000 |
Required:
1. Compute the cost of the ending inventory under each of the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places. If required, round to the nearest dollar.
| TURNER CORPORATION | ||
| Calculation of Ending Inventory by Retail Inventory Method FIFO | ||
| For the year 2019 | ||
| Cost | Retail | |
| $ | $ | |
| $ | $ | |
| $ | $ | |
| Ending inventory at retail | $ | |
| Ending inventory at cost | $ | |
2. Compute the cost of the ending inventory under each of the following cost flow assumption: Average cost. Round the cost-to-retail ratio to three decimal places. If required, round to the nearest dollar.
| TURNER CORPORATION | ||
| Calculation of Ending Inventory by Retail Inventory Method Average Cost | ||
| For the year 2019 | ||
| Cost | Retail | |
| $ | $ | |
| $ | ||
| Ending inventory at retail | $ | |
| Ending inventory at cost | $ | |
3. Compute the cost of the ending inventory under each of the following cost flow assumption: LIFO. Use the given beginning inventory cost in your ending inventory cost at LIFO calculation to avoid a rounding error. Round the cost-to-retail ratio to three decimal places. If required, round to the nearest dollar.
| TURNER CORPORATION | ||
| Calculation of Ending Inventory by Retail Inventory Method LIFO | ||
| For the year 2019 | ||
| Cost | Retail | |
| $ | $ | |
| $ | $ | |
| $ | $ | |
| $ | $ | |
| Ending inventory at retail | $ | |
| Ending inventory at cost | $ | |
4. Compute the cost of the ending inventory under each of 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 required, round to the nearest dollar.
| TURNER CORPORATION | ||
| Calculation of Ending Inventory by Retail Inventory Method Lower of Cost or Market (based on average cost) | ||
| For the year 2019 | ||
| Cost | Retail | |
| $ | $ | |
| $ | $ | |
| Ending inventory at retail | $ | |
| Ending inventory at LCM | $ | |
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Guide To Financial Audit In Life And Health Insurance
Authors: Naser-Eddine Nebbache
1st Edition
6205873397, 978-6205873397
