Exercise 9-21 Presented below is information related to Pina Company Cost Retail

Question

Exercise 9-21 Presented below is information related to Pina Company Cost Retail Beginning inventory Purchases Markups Markup cancellations Markdowns Markdown cancellations Sales revenue $279,000 1,363,000 2,117,000 93,200 16,400 38,300 5,500 2,158,000 $318,504 Compute the inventory by the conventional retail inventory method. (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 conventional retail inventory method

Explanation / Answer

Cost to retail ratio = 1,681,504 / 2,472,800 = 68%

Ending inventory at cost = 282,000*68% = 191,760

Cost price Retail price Beginning inventory 318,504 279,000 Purchases 1,363,000 2,117,000 Net markups 76,800 Totals 1,681,504 2,472,800

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