Question

In: Accounting

The records for the Clothing Department of Bridgeport’s Discount Store are summarized below for the month...

The records for the Clothing Department of Bridgeport’s Discount Store are summarized below for the month of January.

Inventory, January 1: at retail $24,700; at cost $17,000
Purchases in January: at retail $134,900; at cost $89,932
Freight-in: $9,100
Purchase returns: at retail $3,000; at cost $2,300
Transfers in from suburban branch: at retail $12,900; at cost $6,900
Net markups: $7,900
Net markdowns: $4,000
Inventory losses due to normal breakage, etc.: at retail $500
Sales revenue at retail: $94,600

Sales returns: $2,400

Compute the ending inventory using lower-of-average-cost-or-market.

Ending inventory at lower-of-average-cost-or-market $

Solutions

Expert Solution

Cost Retail
Beginning inventory          17,000        24,700
Purchases          89,932      134,900
Freight-in            9,100
Purchases returns          (2,300)        (3,000)
Transfers in from suburban branch            6,900        12,900
Totals        120,632      169,500
Net markups          7,900
     177,400
Net markdowns        (4,000)
Sales revenue        (94,600)
Sales return            2,400
Net sales      (92,200)
Inventory losses due to normal breakage           (500)
Ending inventory at retail        80,700
Cost-to-retail ratio = (120,632/177,400) = 68%
Ending inventory at lower of average cost or market = (80,700*68%) = $54,876

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The records for the Clothing Department of Sharapova’s Discount Store are summarized below for the month...
The records for the Clothing Department of Sharapova’s Discount Store are summarized below for the month of January. Inventory, January 1: at retail $25,000; at cost $17,000 Purchases in January: at retail $137,000; at cost $82,500 Freight-in: $7,000 Purchase returns: at retail $3,000; at cost $2,300 Transfers in from suburban branch: at retail $13,000; at cost $9,200 Net markups: $8,000 Net markdowns: $4,000 Inventory losses due to normal breakage, etc.: at retail $400 Sales revenue at retail: $95,000 Sales returns:...
The records for the Clothing Department of Concord’s Discount Store are summarized below for the month...
The records for the Clothing Department of Concord’s Discount Store are summarized below for the month of January. Inventory, January 1: at retail $25,100; at cost $16,900 Purchases in January: at retail $138,900; at cost $93,060 Freight-in: $7,100 Purchase returns: at retail $3,000; at cost $2,400 Transfers in from suburban branch: at retail $13,000; at cost $9,100 Net markups: $8,000 Net markdowns: $3,900 Inventory losses due to normal breakage, etc.: at retail $500 Sales revenue at retail: $93,300 Sales returns:...
The records for the Clothing Department of Metlock’s Discount Store are summarized below for the month...
The records for the Clothing Department of Metlock’s Discount Store are summarized below for the month of January. Inventory, January 1: at retail $25,100; at cost $17,200 Purchases in January: at retail $135,800; at cost $86,906 Freight-in: $9,400 Purchase returns: at retail $2,900; at cost $2,300 Transfers in from suburban branch: at retail $13,100; at cost $7,000 Net markups: $8,000 Net markdowns: $3,900 Inventory losses due to normal breakage, etc.: at retail $500 Sales revenue at retail: $96,900 Sales returns:...
Problem 9-8 (Part Level Submission) The records for the Clothing Department of Headland’s Discount Store are...
Problem 9-8 (Part Level Submission) The records for the Clothing Department of Headland’s Discount Store are summarized below for the month of January. Inventory, January 1: at retail $24,800; at cost $17,100 Purchases in January: at retail $135,400; at cost $86,710 Freight-in: $9,200 Purchase returns: at retail $3,000; at cost $2,200 Transfers in from suburban branch: at retail $13,200; at cost $7,000 Net markups: $8,100 Net markdowns: $4,100 Inventory losses due to normal breakage, etc.: at retail $300 Sales revenue...
A program was created to randomly choose customers at a clothing store to receive a discount....
A program was created to randomly choose customers at a clothing store to receive a discount. The program claims 22% of the receipts will get a discount in the long run. The owner of the clothing store is skeptical and believes the program's calculations are incorrect. He selects a random sample and finds that 17% received the discount. The confidence interval is 0.17 ± 0.05 with all conditions for inference met. Part A: Using the given confidence interval, is it...
A program was created to randomly choose customers at a clothing store to receive a discount....
A program was created to randomly choose customers at a clothing store to receive a discount. The program claims 22% of the receipts will get a discount in the long run. The owner of the clothing store is skeptical and believes the program's calculations are incorrect. He selects a random sample and finds that 17% received the discount. The confidence interval is 0.17 ± 0.05 with all conditions for inference met. Part A: Using the given confidence interval, is it...
C & S Department Store is the second largest clothing and retail store chain in Jamaica....
C & S Department Store is the second largest clothing and retail store chain in Jamaica. At present, they have 5 clothing and retail stores in all 14 parishes and are planning to expand to 7 stores per parish in the next 3 years. C & S Department Store has a centralized Human Resource Department located at its main office in Kingston. Unfortunately, although the HR processes are managed centrally, there are many HR tasks, policies and procedures that are...
The ABC department store has three major product lines: hardware, clothing, and sporting goods. The store...
The ABC department store has three major product lines: hardware, clothing, and sporting goods. The store is considering dropping the clothing line because the income statement shows that it is operating at a loss. Note the income statement for these product lines below: Hardware Clothing Sporting Goods Total Sales $10,000 $15,000 $25,000 $50,000 Less: Variable costs $6,000 $8,000 $12,000 $26,000 Contribution Margin $4,000 $7,000 $13,000 $24,000 Less: Fixed costs Direct $2,000 $6,500 $4,000 12,500 Allocated $1,000 $1,500 $2,500 $5,000 Total...
The ABC department store has three major product lines: hardware, clothing, and sporting goods. The store...
The ABC department store has three major product lines: hardware, clothing, and sporting goods. The store is considering dropping the clothing line because the income statement shows that it is operating at a loss. Note the income statement for these product lines below: Hardware Clothing Sporting Goods Total Sales $10,000 $15,000 $25,000 $50,000 Less: Variable costs $6,000 $8,000 $12,000 $26,000 Contribution Margin $4,000 $7,000 $13,000 $24,000 Less: Fixed costs Direct $2,000 $6,500 $4,000 12,500 Allocated $1,000 $1,500 $2,500 $5,000 Total...
Brass Department Store stocks toy cars. Recently, the store was given a quantity discount schedule for...
Brass Department Store stocks toy cars. Recently, the store was given a quantity discount schedule for the cars, as shown in Table below. Thus, the normal cost for the cars is $5. For orders between 1,000 and 1,999 units, the unit cost is $4.80, and for orders of 2,000 or more units, the unit cost is $4.75. Furthermore, the ordering cost is $49 per order, the annual demand is 5,000 race cars, and the inventory carrying charge as a percentage...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT