Question
*This homework assignment accounts for five points. No point will be given if the assignment is past due or incomplete, noworkprovided, answers are not specified,
*This homework assignment accounts for five points. No point will be given if the assignment is past due or incomplete, noworkprovided, answers are not specified, or most of work is incorrect. Points will be deducted for errors in your work/answer.
Based on the following information (in scrambled order),compute the ending inventory at cost using:
(1)the conventional retail method and (2) the cost retail method. You should round the cost-to-retail ratios tofourdecimal places, e.g. 0.345678~0.3457 or 34.57%. In your final answer,separately indicate
(a) ending invetory at retail, (b) cost-to-retail ratio, and (c) ending invetory at cost. Summarize your
answersonthebottomofpage.
At cost
At retail
Inventory, Beginning
$12,600
$26,000
Mark-ups
7,600
Purchases
37,560
80,000
Markdowns cancellations
1200
Markup cancellations
800
Freight-in
2,000
Markdowns
8,500
Sales
67,300
Normal damage
4,800
Answer: (You must provide your work to support your answers)
Method
(a) Ending inventory
at retail
(b) Cost-to-retail ratio
(c) Ending inventory at
cost
(1) Conventional retail
(2) Cost retail
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