Question
RDD Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertains to one of its departments
RDD Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertains to one of its departments for the month of October 2020:
|
| Cost | Retail |
| Beginning inventory | $40,000 | $65,000 |
| Purchases | 215,000 | 440,000 |
| Freight-in | 15,600 | - |
| Purchase returns | 4,200 | 6,700 |
| Markups |
| 6,700 |
| Markup cancellations |
| 400 |
| Markdowns |
| 3,500 |
| Markdown cancellations |
| 300 |
| Employee discounts |
| 2,200 |
| Sales |
| 300,000 |
| Sales discounts |
| 4,000 |
Required
Compute the cost of ending inventory for October using the retail method.
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
26th edition
128574361X, 978-1305446052, 1305446054, 978-1285743615
