Exercise 9-20 (Part Level Submission) Presented below is information related to

Question

Exercise 9-20 (Part Level Submission) Presented below is information related to Oriole Company D Brief Exerise 93 Cost 553,760 119,400 Retail Exercise 94 Beginning inventory Purchases (net) Net markups Net markdowns Sales revenue $107,7 204,800 9,605 26,513 175,600 xercise 9-20 (Par evel Submission Review Score Review Results by Study Obiective Your answer is correct Compute the ending inventory at retal. Ending inventory Click if you would like to Show Work for this question: 119992 Open Show work ? (b) Your answer is correct Compute a cost-to-retail percentage under the following conditions. (Round ratios to 2 decimal places, e.g. 7824%) Cost to-retail percentage 55.41 (1) Excluding both markups and markdowns. (2) Excluding markups but including markdowns (3) Excluding markdowns but including markups 60.55 5 3.76

Explanation / Answer

SOLUTION

(A)

(B)

1. Excluding both markups and markdowns-

Cost to retail percentage = 173,160 / (107,700 + 204,800)

= 173,160 / 312,500 = 55.41%

2. Excluding markups but including markdowns-

Cost to retail percentage = 173,160 / (107,700 + 204,800 - 26,513)

= 173,160 / 285,987 = 60.55%

3. Excluding markdowns but including markups-

Cost to retail percentage = 173,160 / 322,105

= 53.76%

4. Including both markdowns and markups -

Cost to retail percentage = 173,160 / 295,592

= 58.59%

(C)

Cost ($) Retail ($) Beginning inventory 53,760 107,700 Purchases 119,400 204,800 Net markups 9,605 Totals 173,160 322,105 Net markdowns (26,513) Sales price of goods available 295,592 Deduct: Sales revenue (175,600) Ending inventory at retail 119,992

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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