Presented below is information related to Splish Inc. Retail $389,100 1,480,700

Question

Presented below is information related to Splish Inc. Retail $389,100 1,480,700 Cost Inventory, 12/31/17 Purchases Purchase returns Purchase discounts Gross sales revenue Sales returns Markups Markup cancellations Markdowns Markdown cancellations Freight-in Employee discounts granted Loss from breakage (normal) $249,200 1,019,914 60,700 18,300 79,200 1,407,300 98,500 118,100 40,800 44,700 20,000 42,700 7,900 4,900 Assuming that Splish Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2018. (Round ratios for computational purposes to 0 decimal places, e.g 78% and final answer to 0 decimal places, eg. 28,987.) Ending inventory using the conventional retail inventory methoo

Explanation / Answer

Cost Retail Begining Inventory 2,49,200 3,89,100 Plus : Purchases 10,19,914 14,80,700 less: purchase returns -60,700 -79,200 less: purchase discounts -18,300 Plus : Frieght in 42,700 Totals 12,32,814 17,90,600 Add:net markups Markups 1,18,100 Less: Markup cancellations -40,800 77,300 Totals 12,32,814 18,67,900 Deduct Markdowns -44,700 Less: Markdown Cancellations 20,000 -24,700 Subtotal 18,43,200 Employee Discounts -7,900 Inventory losses -4,900 Sales price of goods avaiable for sale 18,30,400 Deduct net sales Gross sales 14,07,300 Less Sales returns -98,500 13,08,800 Ending inventory at retail 5,21,600 cost ot retail ratio (1232814/1867900) 66% Ending inventory at cost 3,44,256 Cost method including markups and markdowns Ending inventory at retail 5,21,600 cost ot retail ratio (1232814/1843200) 67% Ending inventory at cost 3,49,472

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