The XYZ Company uses the conventional retail inventory method to estimate ending inventory for its monthly...

The XYZ Company uses the conventional retail inventory method to estimate ending inventory for its monthly financial statements and presents the following data for one department for February 2020. Present a schedule that shows the ending inventory at cost and highlight that cell with color and a thick outside border. Label each column and row clearly so your workpaper can be used by other people in Marquette's accounting department. Present the cost to retail percentage as a percentage with two decimal places.

Inventory, February 1, 2020
At cost	$ 46,000
At retail	81,000
Purchases (exclusive of freight and returns):
At cost	249,600
At retail	423,000
Freight-in	15,400
Purchase returns:
At cost	7,511
At retail	11,350
Markups	2,500
Markup cancellations	1,250
Markdowns (net)	3,600
Sales revenue	245,000

Expert Solution

Conventional Retail Method
	Cost	Retail	Cost to Retail Ratio	Working
Beginning Inventory	$ 46,000.00	$ 81,000.00
*Plus:* Purchases	$ 249,600.00	$ 423,000.00
Purchase Returns	$ (7,511.00)	$ (11,350.00)
Freight In	$ 15,400.00
Net Markups		$ 1,250.00
	$ 303,489.00	$ 493,900.00
*Less:* Net MarkDowns		$ 3,600.00
Goods Available for sale	$ 303,489.00	$ 490,300.00

*Cost to retail Percentage*			61.45%	( $303489 /$ 493900 ) x 100
*Less:* Net Sales		$ 245,000.00
Estimated ending inventory at retail		$ 245,300.00		$ 490300 - $245000
Estimated ending Inventory at cost	$ 150,736.85 or $ 150737 [ANSWER]			245300 x 61.45%

ekkarill92 answered 1 year ago

Tangor Inc. uses the conventional retail inventory method to estimate ending inventory for its monthly financial statements.

Tangor Inc. uses the conventional retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2018. At Cost At Retail Inventory, 10/1/18 52,000 78,000 Freight in 16,600 Markdowns (net) 3,600 Markups 9,000 Markup cancellations 2,000 Purchases 272,000 423,000 Sales 385,000 Purchase returns 5,600 8,000 Normal spoilage and breakage 10,000 Employee...

Crane Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements....

Crane Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2021. Inventory, October 1, 2021 At cost $50,900 At retail 78,600 Purchases (exclusive of freight and returns) At cost 270,540 At retail 426,400 Freight-in 16,900 Purchase returns At cost 5,700 At retail 7,900 Markups 8,900 Markup cancellations 2,000 Markdowns (net) 3,500 Normal spoilage and breakage 10,000 Sales revenue 384,700 (a) Using...

LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial...

LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March 2021: Cost Retail Beginning inventory $ 52,000 $ 72,000 Purchases 219,000 412,000 Freight-in 19,470 Purchase returns 5,500 8,000 Net markups 7,000 Net markdowns 4,700 Normal breakage 8,000 Net sales 292,000 Employee discounts 3,000 Sales are recorded net of employee discounts. Required: 1. Compute estimated ending inventory and cost...

Marigold Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements....

Marigold Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2018. Inventory, October 1, 2018 At cost $52,000 At retail 79,300 Purchases (exclusive of freight and returns) At cost 264,822 At retail 418,300 Freight-in 16,500 Purchase returns At cost 5,500 At retail 8,100 Markups 9,200 Markup cancellations 2,000 Markdowns (net) 3,600 Normal spoilage and breakage 10,000 Sales revenue 395,800 (a) Using...

Novak Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements....

Novak Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2021. Inventory, October 1, 2021 At cost $51,800 At retail 76,700 Purchases (exclusive of freight and returns) At cost 241,978 At retail 424,300 Freight-in 16,500 Purchase returns At cost 5,400 At retail 8,100 Markups 8,900 Markup cancellations 2,000 Markdowns (net) 3,500 Normal spoilage and breakage 9,900 Sales revenue 392,600 (a) Using...

Brandon Shoe Store uses the retail inventory method to estimate its monthly ending inventories. The following...

Brandon Shoe Store uses the retail inventory method to estimate its monthly ending inventories. The following information is available at November 30, 2021: Women’s Shoes Men’s Shoes Cost Retail Cost Retail Beginning inventory $276,000 $424,000 $191,000 $323,000 Purchases 1,181,000 1,801,000 1,046,000 1,772,000 Purchase returns and allowances 24,600 37,000 21,900 36,400 Freight in 6,000 7,200 Sales 1,826,000 1,651,000 Sales returns and allowances 28,000 25,000 At November 30, Brandon Shoe Store takes a physical inventory count at retail. The actual retail values...

Retail inventory method; various cost methods Sparrow Company uses the retail inventory method to estimate ending...

Retail inventory method; various cost methods Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2016 are as follows: Cost Retail Beginning Inventory $90,000 $180,000 Purchases $355,000 $581,000 Freight-in $9,000 Purchase Returns $7,000 $11,000 Net Markups $16,000 Net Markdowns $12,000 Normal Spoilage $3,000 Abnormal Spoilage $4,800 $8,000 Sales $540,000 Sales Returns $10,000 The company records sales net of employee discounts. Discounts for 2016 totaled $4,000. Required: Estimate Sparrow’s ending inventory and...

7. Michael Jackson's Strings uses the conventional retail method to estimate ending inventory. Cost data for...

7. Michael Jackson's Strings uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below: Cost Retail Beginning inventory $46,000 $63,000 Net purchases 154,000 215,000 Net markups 22,000 Net markdowns 35,000 Net sales 220,000 To the nearest thousand, estimated ending inventory using the conventional retail method is A. $30,000. B. $32,000. C. $34,000. D. $37,000. 8. Mario Brothers Company adopted the dollar-value LIFO inventory method on January 1, 2015....

Sheridan uses the conventional retail method to determine its ending inventory at cost. Assume the beginning...

Sheridan uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $395000 ($599000), purchases during the current year at cost (retail) were $2155000 ($3400000), freight-in on these purchases totaled $134000, sales during the current year totaled $3100000, and net markups (markdowns) were $77000 ($113000). What is the ending inventory value at cost? Hint: Round intermediate calculation to 3 decimal places, e.g. 0.635 and final answer to 0 decimal places.

Ivanhoe Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the...

Ivanhoe Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $383500 ($584000), purchases during the current year at cost (retail) were $3208000 ($4993600), freight-in on these purchases totaled $149500, sales during the current year totaled $4466000, and net markups were $404000. What is the ending inventory value at cost? Hint: Round intermediate calculation to 3 decimal places, e.g. 0.635 and final answer to 0 decimal places. Please show...

Question