Question

The records of Buffalo’s Boutique report the following data for the month of April.

Sales revenue		$107,900		Purchases (at cost)		$51,900
Sales returns		2,000		Purchases (at sales price)		82,700
Markups		10,900		Purchase returns (at cost)		2,000
Markup cancellations		1,700		Purchase returns (at sales price)		3,100
Markdowns		8,600		Beginning inventory (at cost)		28,117
Markdown cancellations		2,800		Beginning inventory (at sales price)		47,500
Freight on purchases		2,400

Compute the ending inventory by the conventional retail inventory 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 conventional retail inventory method

$enter the dollar amount of the ending inventory by the conventional retail inventory method rounded to 0 decimal places

Answer 1

Calculation if Ending inventory

	Cost	Retail
Beginning Inventory	28117	47500
Add- Purchases	51900	82700
Less- Purchase return	(2000)	(3100)
Add- Freight on purchases	2400
Add- Mark up		10900
Less - Mark up cancellation		(1700)
Total	80417	136300
Less- Mark down		(8600)
Add- Mark down cancellation		2800
Less-Net Sales		105900
Ending Inventory at retails		24600

Ending Inventory at cost =24600*80417/136300 =$14514