!Question # 2:

A retailer has a beginning monthly inventory valued at $60,000 at retail and $35,000 at cost. Net purchases during the month are $140,000 at retail and $70,000 at cost. Transportation charges are $17,000. Sales are $150,000. Markdowns and discounts equal $20,000. A physical inventory at the end of the month shows merchandise valued at $10,000 (at retail) on hand. Compute the following:

• a. Total merchandise available for sale at cost and at retail
• b. Cost complement
• c. Ending retail book value of inventory
• d. Stock shortages
• e. Adjusted ending retail book value
• f. Gross profit