Question
In: Accounting
The records of Earthly Goods provided the following information for the year ended December 31, 2020....
The records of Earthly Goods provided the following information
for the year ended December 31, 2020.
| At Cost | At Retail | |||||
| January 1 beginning inventory | $ | 466,350 | $ | 922,150 | ||
| Purchases | 3,184,200 | 6,393,700 | ||||
| Purchase returns | 51,800 | 118,350 | ||||
| Sales | 5,485,700 | |||||
| Sales returns | 44,100 | |||||
Required:
1. Prepare an estimate of the company’s year-end inventory
by the retail method. (Round all calculations to two
decimal places.)
Under the assumption the company took a year-end physical
inventory at marked selling prices that totalled $1,674,800,
prepare a schedule showing the store’s loss from theft or other
causes at cost and at retail.
Solutions
Expert Solution
| Inventory at retail | ||
| Particulars | Amount | |
| Sales | 5,485,700 | |
| Markups | - | |
| Returns | (44,100) | |
| Net sales | 5,441,600 | |
| Cost | Retail | |
| Beginning inventory | 466,350 | 922,150 |
| Purchases | 3,184,200 | 6,393,700 |
| Returns | (51,800) | (118,350) |
| Inventory available | 3,598,750 | 7,197,500 |
| Less: sales | (5,441,600) | |
| Ending inventory at retail | 1,755,900 | |
| Less: physical balance | (1,674,800) | |
| Inventory los | 81,100 | |
| × Cost/ Retail ratio | 50.000% | |
| Loss from theft | 40,550.00 |
Ending invnetory at retail is 1,755,900
Loss from theft is 40,550
ekkarill92 answered 2 years agoRelated Solutions
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14.5
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400
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930
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Cost
Total
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Beginning inventory
150
$
31
$
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1/24
Purchase
70
34
2,380
2/22
Sale
(100
)
-
-
3/7
Purchase
90
38
3,420
4/10
Purchase
140
37
5,180
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Sale
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-
9/28
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50
36
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Sale
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-
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