Question

In: Accounting

Use the following information from Dell Enterprise to answer the questions. 2010 Account Cost Retail Inv,...

  1. Use the following information from Dell Enterprise to answer the questions.

2010

Account

Cost

Retail

Inv, Jan 1

$ 10,000

21,000

Purchases

19,000

34,000

Freight In

1,000

Net Markups

6,700

Net Markdowns

5,100

Net Sales

23,000

Employee Discounts

4,000

Normal Shortage

500

  1. Using the Conventional Method, what is the Cost-to-Retail Ratio for 2010? Round to the nearly whole percentage.
  2. Using the Conventional Method, what is the ending inventory valued at Cost for 2010?
  3. Using the LIFO Retail Method, what is the Cost-to-Retail Ratio for 2010?

Solutions

Expert Solution

a. The computation of Cost-to-Retail Ratio for 2010 using the Conventional Method is shown below:-

With the help of given formulas:-

b. The computation of the ending inventory valued at Cost for 2010 is shown below:-

With the help of given formulas:-

c. The computation of the Cost-to-Retail Ratio for 2010 using the LIFO Retail method is shown below:-

With the help of given formulas:-

ekkarill92 answered 1 year ago
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