Question
In: Accounting
Presented below is information related to Marin, Inc. Cost Retail Beginning inventory $331,500 $585,000 Purchases 1,482,000...
Presented below is information related to Marin, Inc.
|
Cost |
Retail |
|||
|---|---|---|---|---|
| Beginning inventory | $331,500 | $585,000 | ||
| Purchases | 1,482,000 | 2,613,000 | ||
| Freight on purchases | 63,180 | |||
| Markups | 136,500 | |||
| Markup cancellations | 109,200 | |||
| Abnormal shortage | 11,700 | 20,280 | ||
| Markdowns | 68,640 | |||
| Markdown cancellations | 9,360 | |||
| Employee discounts | 4,056 | |||
| Sales revenue | 2,788,500 | |||
| Sales returns | 78,000 | |||
| Normal shortage | 13,650 | |||
| Purchase returns | 17,160 | 31,980 |
Compute ending inventory by the conventional retail inventory
method. (Round percentages for computational purposes
to 1 decimal place, e.g. 0.4158 to 41.6% and final answer to 0
decimal places, e.g. 5,275.)
| Ending inventory |
Solutions
Expert Solution
Answer -
Computation of ending inventory by the conventional retail inventory method
| Explanation | Cost ($) | Retail ($) | |
| Beginning inventory | Given in question | 331500 | 585000 |
| Add- Purchases | Given in question | 1482000 | 2613000 |
| Add- Freight on purchases | Given in question | 63180 | - |
| Less- Purchase returns | Given in question | (17160) | (31980) |
| Add- Net markups | $136500 - $109200 | - | 27300 |
| Less- Abnormal shortage | Given in question | (11700) | (20280) |
| Total | - | 1847820 | 3173040 |
| Cost to Retail percentage (%) = 58.2% | ($1847820 / $3173040) * 100 | - | - |
| Less- Net markdowns | $68640 - $9360 | - | (59280) |
| Goods available for sale | - | 1847820 | 3113760 |
| Less- Normal shortage | Given in question | - | (13650) |
| Less- Net sales | $2788500 - $78000 | - | (2710500) |
| Less- Employee discounts | Given in question | - | (4056) |
| Estimated ending inventory at Retail | $3113760 - $13650 - $2710500 - $4056 | - | 385554 |
| Estimated ending inventory at Cost | $385554 * 58.2% | 224392 | - |
ekkarill92 answered 1 year agoRelated Solutions
Presented below is information related to Larkspur, Inc. Cost Retail Beginning inventory $416,500 $735,000 Purchases 1,862,000...
Presented below is information related to Larkspur,
Inc.
Cost
Retail
Beginning inventory
$416,500
$735,000
Purchases
1,862,000
3,283,000
Freight on purchases
79,380
Markups
171,500
Markup cancellations
137,200
Abnormal shortage
14,700
25,480
Markdowns
86,240
Markdown cancellations
11,760
Employee discounts
5,096
Sales revenue
3,503,500
Sales returns
98,000
Normal shortage
17,150
Purchase returns
21,560
40,180
Compute ending inventory by the conventional retail inventory
method. (Round percentages for computational purposes
to 1 decimal place, e.g. 0.4158 to 41.6% and final answer to 0
decimal places,...
Presented below is information related to Flounder Company. Cost Retail Beginning inventory $ 62,430 $90,900 Purchases...
Presented below is information related to Flounder
Company.
Cost
Retail
Beginning inventory
$ 62,430
$90,900
Purchases (net)
113,840
183,000
Net markups
9,421
Net markdowns
26,181
Sales revenue
182,600
Compute the ending inventory at retail.
Ending inventory
$
Link to Text
Compute a cost-to-retail percentage under the following
conditions. (Round ratios to 2 decimal places, e.g.
78.74%)
Cost-to-retail percentage
(1)
Excluding both markups and markdowns.
%
(2)
Excluding markups but including markdowns.
%
(3)
Excluding markdowns but including markups.
%
(4)...
Presented below is information related to Pronghorn Company. Cost Retail Beginning inventory $ 61,600 $107,300 Purchases...
Presented below is information related to Pronghorn
Company.
Cost
Retail
Beginning inventory
$ 61,600
$107,300
Purchases (net)
120,170
180,700
Net markups
10,325
Net markdowns
26,679
Sales revenue
187,090
a) Compute ending inventory at lower-of-cost-or-market.
b) Compute cost of goods sold based on (a)
c) Compute gross margin based on (a)
Presented below is information related to Martinez Company. Cost Retail Beginning inventory $ 53,760 $107,700 Purchases...
Presented below is information related to Martinez
Company.
Cost
Retail
Beginning inventory
$ 53,760
$107,700
Purchases (net)
119,400
204,800
Net markups
9,605
Net markdowns
26,513
Sales revenue
175,600
Compute the ending inventory at retail.
Ending inventory
$
Compute a cost-to-retail percentage under the following conditions.
(Round ratios to 2 decimal places, e.g.
78.74%)
Cost-to-retail percentage
(1)
Excluding both markups and markdowns.
%
(2)
Excluding markups but including markdowns.
%
(3)
Excluding markdowns but including markups.
%
(4)
Including both markdowns...
Presented below is information related to Skysong Company. Cost Retail Beginning inventory $ 56,640 $99,900 Purchases...
Presented below is information related to Skysong
Company.
Cost
Retail
Beginning inventory
$ 56,640
$99,900
Purchases (net)
111,250
216,800
Net markups
10,119
Net markdowns
24,768
Sales revenue
173,490
Compute the ending inventory at retail.
Ending inventory
$
Compute a cost-to-retail percentage under the following
conditions. (Round ratios to 2 decimal places, e.g.
78.74%)
Cost-to-retail percentage
(1)
Excluding both markups and markdowns.
%
(2)
Excluding markups but including markdowns.
%
(3)
Excluding markdowns but including markups.
%
(4)
Including both markdowns...
Presented below is information related to Pronghorn Company. Cost Retail Beginning inventory $ 54,510 $96,300 Purchases...
Presented below is information related to Pronghorn Company.
Cost Retail Beginning inventory $ 54,510 $96,300 Purchases (net)
122,230 194,700 Net markups 9,740 Net markdowns 25,731 Sales
revenue 203,890
Compute the ending inventory at retail. Ending inventory $
Compute a cost-to-retail percentage under the following
conditions. (Round ratios to 2 decimal places, e.g. 78.74%)
Cost-to-retail percentage (1) Excluding both markups and markdowns.
% (2) Excluding markups but including markdowns. % (3) Excluding
markdowns but including markups. % (4) Including both markdowns...
Presented below is information related to Culver Company. Cost Retail Beginning inventory $ 63,190 $103,900 Purchases...
Presented below is information related to Culver
Company.
Cost
Retail
Beginning inventory
$ 63,190
$103,900
Purchases (net)
117,310
182,500
Net markups
11,288
Net markdowns
26,066
Sales revenue
170,960
Compute the ending inventory at retail.
Ending inventory
$
Compute a cost-to-retail percentage under the following
conditions. (Round ratios to 2 decimal places, e.g.
78.74%)
Cost-to-retail percentage
(1)
Excluding both markups and markdowns.
%
(2)
Excluding markups but including markdowns.
%
(3)
Excluding markdowns but including markups.
%
(4)
Including both markdowns...
Presented below is information related to Martinez Company. Cost Retail Beginning inventory $362,797 $286,000 Purchases 1,370,000...
Presented below is information related to Martinez
Company.
Cost
Retail
Beginning inventory
$362,797
$286,000
Purchases
1,370,000
2,145,000
Markups
95,100
Markup cancellations
14,800
Markdowns
32,900
Markdown cancellations
5,100
Sales revenue
2,193,000
Compute the inventory by the conventional retail inventory method.
(Round ratios for computational purposes to 0 decimal
places, e.g. 78% and final answer to 0 decimal places, e.g.
28,987.)
Presented below is information related to Novak Company. Cost Retail Beginning inventory $150,815 $283,000 Purchases 1,369,000...
Presented below is information related to Novak Company.
Cost
Retail
Beginning inventory $150,815 $283,000
Purchases 1,369,000 2,130,000
Markups 93,200
Markup cancellations 14,700
Markdowns 35,900
Markdown cancellations 4,900
Sales revenue 2,186,000
Compute the inventory by the conventional retail inventory method.
(Round ratios for computational purposes to 0 decimal places, e.g.
78% and final answer to 0 decimal places, e.g. 28,987.)
Ending inventory using conventional retail inventory method
Presented below is information related to Kingbird Company. Cost Retail Beginning inventory $186,032$281,000 Purchases 1,393,0002,147,000 Markups...
Presented below is information related to Kingbird Company.
Cost
Retail
Beginning inventory
$186,032$281,000
Purchases
1,393,0002,147,000
Markups
93,500
Markup cancellations
15,100
Markdowns
37,000
Markdown cancellations
4,500
Sales revenue
2,236,000
Compute the inventory by the conventional retail inventory method.
(Round ratios for computational purposes to 0 decimal
places, e.g. 78% and final answer to 0 decimal places, e.g.
28,987.)
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