The records of Marin\'s Boutique report the following data for the month of Apri

Question

The records of Marin's Boutique report the following data for the month of April Sales revenue Sales returns Markups Markup cancellations Markdowns Markdown cancellations 2,700 Beginning inventory (at sales price) Freight on purchases $47,200 85,800 1,800 2,800 36,103 50,600 $95,600 Purchases (at cost) 1,800Purchases (at sales price) 9,500 Purchase returns (at cost) 1,400 Purchase returns (at sales price) 8,600 Beginning inventory (at cost) 2,100 Compute the ending inventory by the conventional retail inventory method. (Round ratios for computational purposes to o decimal places, eg. 7890 and final answer to 0 decimal places, eg. 28,987.) Ending inventory using conventional retail inventory method

Explanation / Answer

Answer :- Ending Inventory at cost is $ 25,137

Calculation of Ending Inventory at cost:-

143800

PARTICULARS COST SALES PRICE Beginning Inventory 36103 50600 Purchases 47200 85800 Less: Purchase Returns (1800) 45400 (2800) 83000 Freight on purchases 2100 TOTALS 81503 135700 Add:- Net Markup:- Markups 9500 Markup Cancellations (1400) Sub-total 8100 Total 81503

143800

Less: Net Markdown Markdowns 8600 Markdown cancellations (2700) 5900 Sub-total 5900 137900 Sales price of goods available 95600 Less: Sales Returns (1800) 93800 Ending inventory at retail 44100 Cost to retail ratio 81503 143800 57% Ending Inventory at cost 25137

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