The records of Ellen’s Boutique report the following data for the month of April

Question

The records of Ellen’s Boutique report the following data for the month of April.

Compute the ending inventory by the conventional retail inventory method.

Sales revenue $96,600 Purchases (at cost) $63,400 Sales returns 4,000 Purchases (at sales price) 93,500 Markups 11,900 Purchase returns (at cost) 4,000 Markup cancellations 1,300 Purchase returns (at sales price) 5,300 Markdowns 9,400 Beginning inventory (at cost) 30,889 Markdown cancellations 4,900 Beginning inventory (at sales price) 51,500 Freight on purchases 4,400

Explanation / Answer

cost to retail ratio = 94689/150300

                          =.63

Inventory at cost = 53200 *.63 = $33516

cost Retail Beginning Inventory 30889 51500 Purchase 63400 93500 less:Purchase return (4000) (5300) Freight in 4400 - Add:Mark up 11900 less:Mark up cancellation (1300) avaialble for sale 94689 150300 Less:mark down (9400) add:mark down cancellation 4900 less:sales (96600) add:sales return 4000 Ending Inventory at retail 53200

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.