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Home Q & A Board Other Fields Homework Help Business Accounting
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Nakeiat Nakeiat
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6 years ago
The following information is available for the month of June for a retail store:

Sales $79,000
Sales Returns$1,000
Markups$10,000
Markup cancellations$1,000
Markdowns$9,300
Purchases (at cost)$40,000
Purchases (at retail)$107,000
Purchase returns (at cost)$1,200
Purchase returns (at retail)$2,000
Beginning inventory (at cost)$30,000
Beginning inventory (at retail) $46,000

Required:
Calculate the ending inventory at cost using the conventional retail method. Round ratios to four decimal places.  (For example, 0.40127 = 0.4013)
Textbook 
Intermediate Accounting

Intermediate Accounting


Edition: 1st
Authors:
Read 58 times
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Replies
wrote...
#1
6 years ago
 
Cost    Retail  
Beginning inventory$30,000 $46,000
Purchases$40,000 $107,000
Purchase returns($1,200)($2,000)
Markups$10,000
Markup cancellations_______($1,000)
Subtotal for ratio$68,800 $160,000
Ratio $68,800 / $160,000 = 43.00%
Markdowns($9,300)
Sales(net)($78,000)
Ending inventory 43.00%  $72,700 =$31,261 $72,700

Ending inventory at cost is $31,261.
Nakeiat Author
wrote...
#2
6 years ago
found this very helpful thank you
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