Question States:

When you undertook the preparation of the financial statements for Telfer Company at January 31, 2018, the following data was available:

At Cost At retail

Inventory, February 1, 2017 $70,800 $98,500

Purchases 219,500 294,000

Purchases returns and allowances 4,300 5,500

Markups 53,000

Markdowns 15,000

Sales revenue 345,000

sales returns and allowances 10,000

Instructions:

A.Compute the cost-to-retail ratio

B.Compute the ending inventory at cost as of January 31, 2018, using the conventional retail method(which approximates the lower of cost or market)

OBLEM 2 (10 points) en you undertook the preparation of the financial statements for following data were aveable a 12 219,500 Inventory, February 1, 2017 Purchases Purchases retums and allowances Markups Markdowns Sales revenue Sales returns and allowances 10,000 Instructions (a) Compute the Cost-to-Retail Ratio (b) Compute the ending inventory at cast as of January 31, 2018, using the conventional retail method (which approximates lower of cost of market)