CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 9-21 | Your answer is

Question

CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 9-21 | Your answer is incorrect. Try again Presented below is information related to Flounder Company. Cost Retail Beginning inventory Purchases Markups Markup cancellations Markdowns Markdown cancellations Sales revenue $103,540 $281,000 1,376,000 2,105,000 93,600 13,700 38,300 4,800 2,179,000 Compute the 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 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT

Explanation / Answer

Cost

Retail

Beginning Inventory

103540

281000

Purchases

1376000

2105000

Merchandise available for sale

1479540

2386000

Add:- Markups

93600

Less:-Markup Cancellation

13700

Totals

1479540

2465900

Deduct:-Markdowns

38300

Add:-Markdown cancellation

4800

Totals

1479540

2432400

Deduct:- Sales

2179000

Ending Inventory at Retail

253400

Ratio of cost to Retail (Conventional Method) = 1479540/2465900 = 60%

Ending Inventory at lower of cost to market = 253400 * 60% = 152040

Cost

Retail

Beginning Inventory

103540

281000

Purchases

1376000

2105000

Merchandise available for sale

1479540

2386000

Add:- Markups

93600

Less:-Markup Cancellation

13700

Totals

1479540

2465900

Deduct:-Markdowns

38300

Add:-Markdown cancellation

4800

Totals

1479540

2432400

Deduct:- Sales

2179000

Ending Inventory at Retail

253400

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