Verizon LTE 1:59 PM * 55%- CS2 - Levi Musselman 2018.xlsx Accounting 3110 Case S
ID: 2522052 • Letter: V
Question
Verizon LTE 1:59 PM * 55%- CS2 - Levi Musselman 2018.xlsx Accounting 3110 Case Study #2-Chapter 9B Problem THE WILDCAT COMPANY The Wildcat Company uses the retail method to estimate its ending inventory. Selected information about its year 2018 operations is as follows 9Beginning inventory cost, 1/1/2018 10 Beginning inventory retail value, 1/1/2018 11 2018 Purchases cost 12 2018 Purchases retail value 13 Incoming freight costs 14 Net markups 15 Net markdowns 330,000 320,000 1,293,000 2,480,000 27,000 200,000 480,000 32,000 25% 300,000 1,700,000 Shrinkage estimate 17 Employee discount 18 Employee sales (net of employee discount) 19 Customer sales 20 21 Required: 2 Estimate ending inventory and cost of goods sold using the CONVENTIONAL retail inventory method (see LO 9-4) 23 24 25 Chapter 9A Chapter 9A Chapter 9B - Data Chapter 9B Chapter 10+
Explanation / Answer
P.S.: I hope I was able to answer your question accurately. I would really appreciate if you could give an appropriate rating/feedback for this solution. Please feel free to post a comment if you have any further doubts or suggestions to make. Happy Learning! :)
Cost Retail Value Beginning Inventory, 1/1/2018 $ 330,000 $ 320,000 2018 Purchases $ 1,293,000 $ 2,480,000 Incoming Freight Costs $ 27,000 Net Markups $ 200,000 $ 1,650,000 $ 3,000,000 Cost to Retail Value Ratio =1.65/3.00 0.55 Retail Value $ 3,000,000 Less: Sales - Customer Sales $ 1,700,000 - Employee Sales(300000*100/75) $ 400,000 $ 2,100,000 Less: Net Markdowns $ 480,000 Less: Shrinkage (Assumed as Normal) $ 32,000 Ending Inventory at Retail Value $ 388,000 Ending Inventory at Cost (388000*0.55) $ 213,400 Cost of Goods Sold (1650000-213400) $ 1,436,600
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.