Question
The records for the Hogwarts Co. are summarized below for the month of January ($ in thousands). Inventory, January 1: at retail $200,000; at cost
The records for the Hogwarts Co. are summarized below for the month of January ($ in thousands).
Inventory, January 1: at retail $200,000; at cost $136,000
Purchases in January: at retail $1,096,000; at cost $660,000
Freight-in: $56,000
Purchase returns: at retail $24,000; at cost $18,400
Transfers-in from suburban branch: at retail $104,000; at cost $73,600
Net markups: $64,000
Net markdowns: $32,000
Inventory losses due to normal breakage, etc.: at retail $3,200
Sales at retail: $760,000
Sales returns: $19,200
Required:
Compute the ending inventory using cost method.
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