The opening inventory at retail at “The Tie Place” consisted of the following: 15 dozen ties...

The opening inventory at retail at “The Tie Place” consisted of the following:

15 dozen ties priced at $25.00 each

4 dozen sterling tie clips priced at $40.00 each

50 gift boxes priced at $1.50 each

The current inventory carries a markup of 50%. During the month, a buyer purchases 4 dozen special purchase ties that cost her $8.00 each. If she plans to retail them for the same price as all of the other ties, what will be the cumulative markup on the merchandise for the month? Round to the nearest whole dollar, when calculating “$ Cost” and “$ Retail”. Round your final answer to two decimal places.

	A.	52.80%
	B.	45.91%
	C.	14.72%
	D.	52.54%

Expert Solution


Cost price	Quantity	CP = Retail price * 50 %	Amount
Special ties( purchase price )	48	8.00	384
Ties	180	12.50	2,250
tie clips	48	20.00	960
Gift boxes	50	0.75	38
			3,632	(A)

Retail sales price
Special ties	48	25	1,200
Ties	180	25	4,500
tie clips	48	40	1,920
Gift boxes	50	1.5	75
			7,695	(B)

Cumulative mark up on inventory for the month			4,064

		% of mark up	52.81

jeff jeffy answered 1 year ago

PC Refinery uses a FIFO process costing system. For a particular period, its opening inventory consisted...

PC Refinery uses a FIFO process costing system. For a particular period, its opening inventory consisted of 100 items (60 per cent complete as to conversion costs) whose costs were $1,600 made up of material $300 and conversion cost $1,300. During the month, 1,000 items were started and 950 were completed. Ending inventory of WIP was one-third complete. There was no spoilage. Costs placed in process during the month were materials $1,785 and conversion costs $13,865. Materials are added at...

Retail Inventory Method Turner Corporation uses the retail inventory method. The following information relates to 2016:...

Retail Inventory Method Turner Corporation uses the retail inventory method. The following information relates to 2016: Cost Retail Cost Retail Inventory, January 1 $ 29,000 $ 45,000 Additional markups — $ 50,000 Purchases (gross price) 140,000 190,000 Markup cancellations — 10,000 Purchases discounts taken 3,000 — Markdowns — 15,000 Purchases returns 5,000 8,000 Markdown cancellations — 3,000 Freight-in 20,000 — Net Sales — 190,000 Employee discounts — 3,000 Required: 1. Compute the cost of the ending inventory under each of...

Question text Assume the following data for a retailer's inventory. Retail Inventory # units $ /...

Question text Assume the following data for a retailer's inventory. Retail Inventory # units $ / unit Total Beginning Inventory 1 20 20 Purchase of Inventory 1 22 22 Purchase of Inventory 1 24 24 Purchase of Inventory 1 26 26 Goods Available for Sale (GAFS) 4 92 Sale of Inventory 1 40 40 Ending Inventory 3

Hansard Ltd. estimates its quarterly inventory by the retail inventory method. The following data are available for the

Hansard Ltd. estimates its quarterly inventory by the retail inventory method. The following data are available for the quarter ended 30 June 20X7: Required:1. Prepare a schedule to compute the estimated inventory at 30 June 20X7.

Pam’s Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of...

Pam’s Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of 280 items at $96 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records. Date Transaction Description Mar. 5 Purchased 260 items @ $ 106 Apr. 10 Sold 150 items @ $ 207 June 19 Sold 275 items @ $ 207 Sept. 16 Purchased 210 items @ $ 111 Nov. 28 Sold 140 items @ $ 212 Required a....

6. Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following...

6. Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year: Cost Retail Beginning inventory $ 60,000 $ 90,000 Purchases 380,000 520,000 Freight-in 5,000 — Net markups — 17,000 Net markdowns — 20,000 Sales revenue — 410,000 What is the cost of ending inventory using the conventional method?

Noa Corporations uses the retail inventory method to estimate its ending inventory. The following information relates...

Noa Corporations uses the retail inventory method to estimate its ending inventory. The following information relates to Noa Corporation’s inventory at both cost and retail for the current year. Description Cost Retail Beginning Inventory $55,000 $78,500 Purchases 250,000 325,000 Purchase discount 10,000 Freight-In 5,000 Additional markups 24,000 Markup cancellations 7,000 Markdowns 12,000 Markdown cancellations 3,500 Sales 400,000 Instructions: Answer each of the following questions. What is the ending inventory at retail? If the ending inventory is to be valued at...

Arp Corp.'s outstanding capital stock at December 15, 20X5 consisted of the following: 1. 40,000 shares...

Arp Corp.'s outstanding capital stock at December 15, 20X5 consisted of the following: 1. 40,000 shares of 6% cumulative preferred stock, par value $15 per share, fully participating as to dividends. No dividends were in arrears. 2. 360,000 shares of common stock, par value $2 per share. On December 15, 20X5, Arp declared dividends of $150,000. What was the amount of dividends payable to Arp's common stockholders? A. $68,182 B. $81,818 C. $150,000 D. $36,000 The owners' equity section of...

. Review of Ace’s financial reports and information revealed the following: Sales 2.4 million Opening inventory...

. Review of Ace’s financial reports and information revealed the following: Sales 2.4 million Opening inventory 650,000 Purchase 1.1million Closing inventory 585,000 Heat, light utilities 300,000 Employee payroll 245,000 Executive salary and pension 350,000 EPA fines 85,000 Life insurance premiums paid 47,000 Life insurance collected on death of vice-president 500,000 Depreciation expense: GAAP Double declining balance total for year 85,000 MACRS, including section 179 and special first year, 692,000 Income tax paid Federal Regular 62,000, AMT 16,000, New York State/City...

Retail Inventory Method The records of Sudbury Menswear report the following data for the month of...

Retail Inventory Method The records of Sudbury Menswear report the following data for the month of September: Sales $118,500 Purchase (at cost) $59,500 Sales returns 2,500 Purchase (at retail) 112,600 Additional markups 10,500 Purchase return (at cost) 2,500 Markup cancellations 1,500 Purchase return (at retail) 3,500 Markdowns 9,300 Beginning inventory (at cost) 32,000 Markdown cancellations 2,800 Beginning inventory (at retail) 48,500 Freight on purchase 3,600 Required: a. Estimate the ending inventory using the retail inventory method. Round the cost ratio...

Question