Boyne Inc. had beginning inventory of $13,700 at cost and $28,700 at retail. Net

Question

Boyne Inc. had beginning inventory of $13,700 at cost and $28,700 at retail. Net purchases were $147,850 at cost and $175,000 at retail. Net markups were $11,700; net markdowns were $9,000; and sales revenue was $157,200. Compute ending inventory at cost using the conventional retail 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 the conventional retail method $_________________

Boyne Inc. had beginning inventory of $13,700 at cost and $28,700 at retail. Net purchases were $147,850 at cost and $175,000 at retail. Net markups were $11,700; net markdowns were $9,000; and sales revenue was $157,200. Compute ending inventory at cost using the conventional retail 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 the conventional retail method $_________________

Explanation / Answer

COST RETAIL Beginning inventory 13,700 28,700 Purchases (net) 1,47,850 1,75,000 Totals 1,61,550 2,03,700 Add: Markups (net) 11,700 Totals 1,61,550 2,15,400 Less: Markdowns (net) 9,000 Goods available for sale at retail 2,06,400 Less: Sales (net) 1,57,200 Ending inventory at retail 49,200 COST SALES RATIO Cost-to-retail ratio: 1,61,550 2,15,400 75% Computation of ending inventory at cost: Ending inventory at retail 49,200 Cost-to-retail ratio 75% Ending inventory at cost 36,900

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