50.1K

Verified Solution

Link Copied!

(6) Gross Profit Method

Kay's Beauty Supply uses the gross profit method to estimate the cost of ending inventory for in-house interim financial statements. Based on the following information for March, calculate Kay's' ending inventory at March 31.

Cost of goods available for sale	$125,000
Net sales for March	$80,000
Estimated historical gross profit rate on net sales	35%

$

(7) Retail Inventory Method

Uncle Butch's Hunting Supply Shop reports the following information related to inventory:

	Cost	Retail
Beginning inventory	$ 35,000	$ 92,000
Purchases	75,000	200,000
Net additional markups		15,000
Net markdowns		(22,000)
Goods available for sale	$110,000	$ 285,000
Sales		(178,000)
Ending inventory at retail		$ 107,000

Calculate Uncle Butch's' ending inventory using the retail inventory method under the FIFO cost flow assumption. Round the cost-to-retail ratio to 3 decimal places.

$

(8) Retail Inventory Method

Uncle Butch's Hunting Supply Shop reports the following information related to inventory:

	Cost	Retail
Beginning inventory	$ 35,000	$ 92,000
Purchases	75,000	200,000
Net additional markups		15,000
Net markdowns		(22,000)
Goods available for sale	$110,000	$ 285,000
Sales		(178,000)
Ending inventory at retail		$ 107,000

Calculate Uncle Butch's Hunting Supply Shop's ending inventory using the retail inventory method under the average cost assumption. Round the cost-to-retail ratio to 3 decimal places.

$

(9) Retail Inventory Method

Uncle Butch's Hunting Supply Shop reports the following information related to inventory:

	Cost	Retail
Beginning inventory	$ 35,000	$ 92,000
Purchases	75,000	200,000
Net additional markups		15,000
Net markdowns		(22,000)
Goods available for sale	$110,000	$ 285,000
Sales		(178,000)
Ending inventory at retail		$ 107,000

Calculate Uncle Butch's Hunting Supply Shop's ending inventory using the retail inventory method under the LIFO cost flow assumption. Round the cost-to-retail ratio to 3 decimal places.

$

(10)

Retail Inventory Method

Uncle Butch's Hunting Supply Shop reports the following information related to inventory:

	Cost	Retail
Beginning inventory	$ 35,000	$ 92,000
Purchases	75,000	200,000
Net additional markups		15,000
Net markdowns		(22,000)
Goods available for sale	$110,000	$ 285,000
Sales		(178,000)
Ending inventory at retail		$ 107,000

Calculate Uncle Butch's Hunting Supply Shop's ending inventory using the retail inventory method under the lower of average cost or market assumption. Round the cost-to-retail ratio to 3 decimal places.

$

Answer & Explanation Solved by verified expert

See Answer