Kieso, Intermediate Accounting, 16e Intermediate Accounting (AG Brief Exercise 9

Question

Kieso, Intermediate Accounting, 16e Intermediate Accounting (AG Brief Exercise 9-10 El Your answer is incorrect. Try agan sandhil Inc. had beginning inventory of $11,800 at cost and $21.000 at retail. Net purchases were s119.550 at cost and s153,400 at retail., Net markups were $10,60o, net markdowns were $6,400, and sales revenue was s141.800. Compute ending inventory at cost using the conventional retail method. (Round ratios for computational purpose rding inventory using the conventional retail method L- Question Attempts: I of 10 used Se FOR LATER

Explanation / Answer

Cost Retail Beginning Inventory               11,800        21,000 Purchases (Net)           1,19,500    1,53,400 Total           1,31,300    1,74,400 Add: Markups (Net)        10,600 Totals           1,31,300    1,85,000 Deduct : Mark downs (Net)        -6,400 Sale price of goods available    1,78,600 Less: Sales -1,41,800 Ending Inventory at retail        36,800 Cost to Retail Ratio = 131,300/185,000 =71% Ending Inventory at cost (36800*71%)        26,128

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