Question
In: Accounting
The following data concerning the retail inventory method are taken from the financial records of Blake...
The following data concerning the retail inventory method are taken from the financial records of Blake Company.
Cost Retail
Beginning inventory $132,000 $ 220,000
Purchases 362,500 550,000
Freight-in 16,000 —
Net markups — 45,000
Net markdowns — 16,000
Sales — 625,000
a.) What is the ending inventory at retail?
b.) If the ending inventory is to be valued at approximately the conventional retail inventory method, the calculation of the cost to retail ratio should be based on goods available for sale at:(1) cost(dollar amount) and (2) retail(dollar amount)
c) What is the cost of ending inventory using the FIFO cost method?
d.) What is the cost of ending inventory using the LIFO Retail Method?
Solutions
Expert Solution
| Cost | Retail | |
| Purchases | 362500 | 550000 |
| Freight-in | 16000 | |
| Markups | 45000 | |
| Mark Downs | 16000 | |
| total | 378500 | 579000 |
| Add: Beginning Inventory | 132000 | 220,000 |
| Goods available for sale | 510500 | 799000 |
| Sales- at retail | 625000 | |
| Ending year inventory at retail | 174000 |
a. Ending year inventory at retail = 174000
b. cost to retail ratio = 510500/799000 = 63.89%
c. Cost of ending inventory using FIFO cost = 174000*63.89% = 111,172.72
d.Since the year end inventory at retail is lower than the opening inventory at retail, there is no layer for the current year under LIFO Retail method. Therefore, ending inventory at LIFO retail = 174000
ekkarill92 answered 2 years agoRelated Solutions
The following data concerning the retail inventory method are taken from the financial records of Blake Company.
The following data concerning the retail inventory method are
taken from the financial records of Blake
Company.
Cost
Retail
Beginning
inventory
$132,000
$ 220,000
Purchases
362,500
550,000
Freight-in
16,000
—
Net
markups
—
45,000
Net
markdowns
—
16,000
Sales
—
625,0001. What is the ending inventory at retail? 2. If the ending inventory is to be valued at approximately theconventional retail inventory
method, the calculation of the cost to retail
ratio should be based on goods available for sale...
Retail Inventory Method The records of Sudbury Menswear report the following data for the month of...
Retail Inventory Method
The records of Sudbury Menswear report the following data for
the month of September:
Sales
$118,500
Purchase (at cost)
$59,500
Sales returns
2,500
Purchase (at retail)
112,600
Additional markups
10,500
Purchase return (at cost)
2,500
Markup cancellations
1,500
Purchase return (at retail)
3,500
Markdowns
9,300
Beginning inventory (at cost)
32,000
Markdown cancellations
2,800
Beginning inventory (at retail)
48,500
Freight on purchase
3,600
Required:
a. Estimate the ending inventory using the retail inventory
method. Round the cost ratio...
The following cost and inventory data are taken from the accounting records of a Company for...
The following cost and inventory data are taken from the
accounting records of a Company for the year just completed:
Costs incurred:
Direct labor cost
................................................... $140,000
Purchases of raw materials ..................................
$236,000
Manufacturing overhead ......................................
$160,000
Advertising expense .............................................
$180,000
Sales salaries
.......................................................
$100,000
Depreciation, office equipment ............................
$6,000
Inventories: Beginning the Year End the Year
Raw materials ............................ $14,000 $30,000
Work in process .......................... $20,000 $10,000
Finished goods ............................ $40,000 $70,000
Required:
1. Prepare the cost of goods...
The following cost and inventory data are taken from the accounting records of a Company for...
The following cost and inventory data are taken from the
accounting records of a Company for the year just completed:
Costs incurred:
Direct labor cost
................................................... $140,000
Purchases of raw materials ..................................
$236,000
Manufacturing overhead ......................................
$160,000
Advertising expense .............................................
$180,000
Sales salaries
.......................................................
$100,000
Depreciation, office equipment ............................
$6,000
Inventories: Beginning the Year End the Year
Raw materials ............................ $14,000 $30,000
Work in process .......................... $20,000 $10,000
Finished goods ............................ $40,000 $70,000
Required:
1. Prepare the cost of goods...
The following cost and inventory data are taken from the accounting records of Mason Company for...
The following cost and inventory data are taken from the
accounting records of Mason Company for the
year just completed:
Costs incurred:
Direct labor cost
................................................... $70,000
Purchases of raw materials ..................................
$118,000
Manufacturing overhead ......................................
$80,000
Advertising expense .............................................
$90,000
Sales salaries
.......................................................
$50,000
Depreciation, office equipment ............................
$3,000
Beginning of the year End of the year
Inventories:
Raw materials ............................ $7,000 $15,000
Work in process .......................... $10,000 $5,000
Finished goods ............................ $20,000 $35,000
1. Prepare a schedule...
The following production data were taken from the records of the Finishing Department for June: Inventory...
The following production data were taken from the records of the
Finishing Department for June:
Inventory in process, June 1 (30%
completed)
4,000 units
Completed units during June
65,000 units
Ending inventory (60% complete)
7,000 units
What is the number of material equivalent units of production in
the June 30, Finishing Department inventory, assuming that the
first-in, first-out method is used to cost inventories and
materials were added at the beginning of the process?
The following information is taken from the inventory records of the CNB Company for the month...
The following information is taken from the inventory records of
the CNB Company for the month of September:
Beginning inventory, 9/1/2021
6,300
units @ $11.00
Purchases:
9/7
4,200
units @ $11.60
9/25
10,500
units @ $12.20
Sales:
9/10
5,000
units
9/29
6,000
units
10,000 units were on hand at the end of
September.
Required:
1. Assuming that CNB uses a periodic inventory
system and employs the average cost method, determine cost of goods
sold for September and September's ending inventory....
The following information is taken from the inventory records of the CNB Company for the month...
The following information is taken from the inventory records of
the CNB Company for the month of September:
Beginning inventory, 9/1/2021
7,000
units @ $10.00
Purchases:
9/7
3,000
units @ $11.00
9/25
10,000
units @ $11.50
Sales:
9/10
4,000
units
9/29
5,000
units
11,000 units were on hand at the end of
September.
Required:
1. Assuming that CNB uses a periodic inventory
system and employs the average cost method, determine cost of goods
sold for September and September's ending inventory....
The following data were taken from the records of a company &n
The following data were taken
from the records of a company
Period 1 Period
2 Period 2
Production
30,000
38,000
27,000
Sales
30,000
27,000
38,000
Opening
Stock
-
11,000
Closing
Stock
11,000
All the above in
Kgs
The firm makes a single
product the financial details of which are as follows (based on a
normal
activity level of 30,000
kgs).
Cost per Kg (£)
Direct
material
1.50
Direct
labour
1.00
Production...
The records of Lohse Stores included the following data: Inventory, May 1, at retail, $14,500; at...
The records of Lohse Stores included the following data:
Inventory, May 1, at retail, $14,500; at cost, $10,440 Purchases
during May, at retail, $42,900; at cost, $31,550 Freight-in,
$2,000; purchase discounts, $250 Additional markups, $3,800; markup
cancellations, $400; net markdowns, $1,300 Sales during May,
$45,500 Calculate the estimated inventory at May 31 on a LIFO
basis. Estimated inventory
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