Question

Problem 9-8 (Part Level Submission) The records for the Clothing Department of Headland’s Discount Store are summarized below for the month of January. Inventory, January 1: at retail $24,800; at cost $17,100 Purchases in January: at retail $135,400; at cost $86,710 Freight-in: $9,200 Purchase returns: at retail $3,000; at cost $2,200 Transfers in from suburban branch: at retail $13,200; at cost $7,000 Net markups: $8,100 Net markdowns: $4,100 Inventory losses due to normal breakage, etc.: at retail $300 Sales revenue at retail: $93,900 Sales returns: $2,400 Collapse question part (a) Compute the inventory for this department as of January 31, at retail prices. Ending inventory at retail

Answer 1

Particulars				Cost	Retail
Beginning Inventory				$      17,100.00	$      24,800.00
Plus: Purchases				$      86,710.00	$    135,400.00
Freight In				$         9,200.00
Less: Purchase return				$       (2,200.00)	$       (3,000.00)
Add: Transfer In				$         7,000.00	$      13,200.00
Net Markups				$                     -	$         8,100.00
				$    117,810.00	$    178,500.00
Less: Net Markdowns				$                     -	$         4,100.00
Goods available for sale				$    117,810.00	$    174,400.00
Less: Net sales					$      91,200.00	($ 93900 - $ 2400 - $ 300)
Estimated ending inventory at retail					$      83,200.00	($ 174400 - $ 91200)