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

Expert Solution

jeff jeffy answered 1 year ago

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

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

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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...

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