Question
Retail Inventory Method Uncle Butch's Hunting Supply Shop reports the following information related to inventory: Cost Retail Beginning inventory $35,000 $92,000 Purchases 75,000 200,000 Net
Retail Inventory Method
Uncle Butch's Hunting Supply Shop reports the following information related to inventory:
| Cost | Retail | |
| Beginning inventory | $35,000 | $92,000 |
| Purchases | 75,000 | 200,000 |
| Net additional markups | 15,000 | |
| Net markdowns | (22,000) | |
| Goods available for sale | $110,000 | $285,000 |
| Sales | (178,000) | |
| Ending inventory at retail | $107,000 |
Calculate Uncle Butch's' ending inventory using the retail inventory method under the FIFO cost flow assumption. Round the cost-to-retail ratio to 3 decimal places.
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
