A retailer has a beginning monthly inventory valued at $60,000 at retail and $35,000 at cost....

A retailer has a beginning monthly inventory valued at $60,000 at retail and $35,000 at cost. Net purchases during the month are $40,000 at cost and $170,000 at retail. Transportation charges are $7,000. Sales are $150,000. Markdowns and discounts equal $20,000. A physical inventory at the end of the month shows merchandise valued at $10,000 (at retail) on hand. Compute the following:

a. Total merchandise available for sale – at cost and at retail

b. Cost complement

c. Ending retail book value of inventory

d. Stock shortages

e. Adjusted ending retail book value

f. Gross profit

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Retail Inventory Method Beginning Inventory At cost $100,000 At retail $125,000 Net purchases At cost $300,000...

Retail Inventory Method Beginning Inventory At cost $100,000 At retail $125,000 Net purchases At cost $300,000 At retail $360,000 Net markups $15,000 Net markdowns $10,000 Net sales at retail $280,000 Average cost per unit $8.00 Average selling price per unit $10.00 Using the gross profit inventory estimation method: 1. Compute gross profit on sales. 2. Compute cost of goods sold. 3. Compute the estimated cost of ending inventory. Using the conventional (average LCM) inventory estimation method: 1. Compute the ending...

Cost Retail Beginning inventory 347,900 784,000 Purchases 730,100 980,000 Freight in &nb

Cost Retail Beginning inventory 347,900 784,000 Purchases 730,100 980,000 Freight in 39,200 - Mark ups - 98,000 Mark downs - 116,375 Sales - 686,000 Find Ending Inventory using avg. cost, conventional, LIFO methods

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.

Vaughn Inc. had beginning inventory of $12,411 at cost and $19,700 at retail. Net purchases were...

Vaughn Inc. had beginning inventory of $12,411 at cost and $19,700 at retail. Net purchases were $99,730 at cost and $153,700 at retail. Net markups were $10,500, net markdowns were $6,400, and sales revenue was $149,700. Assume the price level increased from 100 at the beginning of the year to 105 at year-end. Compute ending inventory at cost using the dollar-value LIFO retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to 0...

Swifty Inc. had beginning inventory of $11,000 at cost and $19,800 at retail. Net purchases were...

Swifty Inc. had beginning inventory of $11,000 at cost and $19,800 at retail. Net purchases were $122,300 at cost and $184,200 at retail. Net markups were $11,000, net markdowns were $7,000, and sales revenue was $140,100. Compute ending inventory at cost using the conventional retail 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 the conventional retail method

Pharoah Inc. had beginning inventory of $12,017 at cost and $19,700 at retail. Net purchases were...

Pharoah Inc. had beginning inventory of $12,017 at cost and $19,700 at retail. Net purchases were $112,000 at cost and $174,400 at retail. Net markups were $9,100, net markdowns were $7,400, and sales revenue was $160,500. Assume the price level increased from 100 at the beginning of the year to 105 at year-end. Compute ending inventory at cost using the dollar-value LIFO retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to 0...

Sheffield Inc. had beginning inventory of $25,200 at cost and $42,000 at retail. Net purchases were...

Sheffield Inc. had beginning inventory of $25,200 at cost and $42,000 at retail. Net purchases were $252,000 at cost and $357,000 at retail. Net markups were $21,000, net markdowns were $14,700, and sales revenue was $308,700. Assume the price level increased from 100 at the beginning of the year to 115 at year-end. Compute ending inventory at cost using the dollar-value LIFO retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to 0...

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...

Subjects