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Retail-Mart values its inventory using the conventional retail inventory method. It discloses the following data for the month of June. Cost Selling Price Inventory (beginning),
Retail-Mart values its inventory using the conventional retail inventory method. It discloses the following data for the month of June.
Cost | Selling Price | |
---|---|---|
Inventory (beginning), June 1 | $129,120 | $192,000 |
Markdowns | 50,400 | |
Markups | 69,600 | |
Markdown cancellations | 24,000 | |
Markup cancellations | 21,600 | |
Purchases | 415,680 | 536,640 |
Sales | 600,000 | |
Purchase returns and allowances | 7,200 | 8,640 |
Sales returns and allowances | 24,000 |
Compute estimated inventory at June 30 using the conventional retail inventory method. Note: Use negative signs as appropriate in the following schedule.
Cost | Retail | |
---|---|---|
Goods available for sale: | ||
Beginning inventory | Answer
| Answer
|
Add: | ||
Net purchases | Answer
| Answer
|
Net markups | Answer
| Answer
|
Net markdowns | Answer
| Answer
|
Total goods available for sale | Answer
| Answer
|
Subtract: | ||
Net sales | Answer
| |
Net markups | Answer
| |
Net markdowns | Answer
| |
Estimated ending inventory at retail | Answer
|
Cost Ratio | ||||
---|---|---|---|---|
Numerator | / | Denominator | = | Result |
Answer
| / | Answer
| = |
Estimated ending inventory at cost | |
---|---|
Estimated ending inventory at retail | Answer
|
cost ratio | |
Estimated ending inventory at cost | Answer
|
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