Presente perOW IS INTormation rerarea Orrounder company.
Retail
Cost
$148,740
1,359,000
Beginning inventory
Purchases
Markups
Markup cancellations
Markdowns
Markdown cancellations
Sales revenue
$285,000
2,148.000
96.200
16,300
31,800
4,700
2,209,000
Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, eg.
78% and final answer to O decimal places, eg. 28,987.)
Ending inventory using conventional retail inventory method
$

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Tundexi Tundexi · Answer 1 · 2021-05-28T03:49:36+02:00

Answer:

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Conventional Inventory Method

Particulars Cost Retail

Beginning inventory A $148,740 $285,000

Purchases $1,359,000 $2,148,000

Markups-net $79,900

Current year's addition B $1,359,000 $2,227,900

Goods available for sale C=A+B) $1,507,740 $2,512,900

Markdown-net ($27,100)

Sales ($2,209,000)

Ending inventory at retail $276,800

Cost-to-retail percentage = $1,507,740 / $2,512,900*100

Cost-to-retail percentage = 0.6 * 100

Cost-to-retail percentage = 60%

Ending inventory at cost = Ending inventory at retail * Cost-to-retail percentage

Ending inventory at cost = $276,800 * 60%

Ending inventory at cost = $166,080