QUESTION 1

Presented below is information related to Skysong, Inc.

		Cost		Retail
Beginning inventory		$365,500		$645,000
Purchases		1,634,000		2,881,000
Freight on purchases		69,660
Markups				150,500
Markup cancellations				120,400
Abnormal shortage		12,900		22,360
Markdowns				75,680
Markdown cancellations				10,320
Employee discounts				4,472
Sales revenue				3,074,500
Sales returns				86,000
Normal shortage				15,050
Purchase returns		18,920		35,260

Compute ending inventory by the conventional retail inventory method. (Round percentages for computational purposes to 1 decimal place, e.g. 0.4158 to 41.6% and final answer to 0 decimal places, e.g. 5,275.)

Ending inventory

$enter the ending inventory in dollars rounded to 0 decimal places

QUESTION 2

You are called by Tim Duncan of Headland Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.

Inventory, July 1		$ 38,200
Purchasesgoods placed in stock July 115		80,300
Sales revenuegoods delivered to customers (gross)		124,800
Sales returnsgoods returned to stock		4,400

Your client reports that the goods on hand on July 16 cost $29,400, but you determine that this figure includes goods of $5,500 received on a consignment basis. Your past records show that sales are made at approximately 30% over cost. Duncans insurance covers only goods owned. Compute the claim against the insurance company. (Round ratios for computational purposes to 2 decimal places, e.g. 78.73% and final answer to 0 decimal places, e.g. 28,987.)

Claim against the insurance company

$

QUESTION 3 Wildhorse Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.

Item No.		Quantity			Cost per Unit			Cost to Replace			Estimated Selling Price			Cost of Completion and Disposal			Normal Profit
1320		1,300			$3.78			$3.54			$5.31			$0.41			$1.48
1333		1,000			3.19			2.71			4.13			0.59			0.59
1426		900			5.31			4.37			5.90			0.47			1.18
1437		1,100			4.25			3.66			3.78			0.30			1.06
1510		800			2.66			2.36			3.84			0.94			0.71
1522		600			3.54			3.19			4.48			0.47			0.59
1573		3,100			2.12			1.89			2.95			0.89			0.59
1626		1,100			5.55			6.14			7.08			0.59			1.18

From the information above, determine the amount of Wildhorse Company inventory.

The amount of Wildhorse Companys inventory

$enter the dollar amount of Wildhorse Company's inventory