Question 5 Presented below is information related to Waveland Inc. Cost Retail I
ID: 2415616 • Letter: Q
Question
Question 5
Presented below is information related to Waveland Inc.
Cost
Retail
Inventory, 12/31/14
$296,000
$406,000
Purchases
999,861
1,476,000
Purchase returns
63,470
83,100
Purchase discounts
18,140
Gross sales revenue
1,414,000
Sales returns
97,900
Markups
124,100
Markup cancellations
47,700
Markdowns
50,400
Markdown cancellations
20,600
Freight-in
42,200
Employee discounts granted
9,000
Loss from breakage (normal)
5,200
Assuming that Waveland Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2015. (Round ratios for computational purposes to 0 decimal places, e.g 78% and final answer to 0 decimal places, e.g. 28,987.)
Cost
Retail
Inventory, 12/31/14
$296,000
$406,000
Purchases
999,861
1,476,000
Purchase returns
63,470
83,100
Purchase discounts
18,140
—Gross sales revenue
—1,414,000
Sales returns
—97,900
Markups
—124,100
Markup cancellations
—47,700
Markdowns
—50,400
Markdown cancellations
—20,600
Freight-in
42,200
—Employee discounts granted
—9,000
Loss from breakage (normal)
—5,200
Explanation / Answer
Cost Retail Inventory, 12/31/14 2,96,000 4,06,000 Purchases 9,99,861 14,76,000 Purchase returns 63,470 83,100 Purchase discounts 18,140 — Gross sales revenue — 14,14,000 Sales returns — 97,900 Markups — 1,24,100 Markup cancellations — 47,700 Markdowns — 50,400 Markdown cancellations — 20,600 Freight-in 42,200 — Employee discounts granted — 9,000 Loss from breakage (normal) — 5,200 Particulars Amount($) Remarks Beginning Inventory 2,96,000 Cost Add: Purchases 9,99,861 Less: returns -63,470 Less: Purchase discounts -18,140 Add: freight in 42,200 Goods available for sale 12,56,451 Less: Cost of Sales 12,09,900 Ending inventory 46,551
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.