80.2K

Verified Solution

Link Copied!

Based on the following information $($in scrambled order$),$ compute the ending inventory at cost using: $(1)$ the conventional retail method and $(2)$ the cost retail method. You should round the cost$-$to$-$retail ratios at least to four decimal places, e$.$g$.\backslash (0\mathrm{.}345678\backslash$sim $0\mathrm{.}3457\backslash )$ or $\backslash (34\mathrm{.}57\backslash \%\backslash ).$ In your final answers, separately indicate: $($a$)$ ending inventory at retail, $($b$)$ cost$-$to$-$retail ratio, and $($c$)$ ending inventory at cost$.$ Summarize your answers on the bottom of page.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline & At cost & At retail $\backslash \backslash$

$\backslash$hline Inventory, Beginning & $\backslash (\backslash$$ $41,500\backslash )$ & $\backslash (\backslash$$ $73,000\backslash )\backslash \backslash$

$\backslash$hline Markups & & $5,400\backslash \backslash$

$\backslash$hline Freight$-$in & $4,900$ & $\backslash \backslash$

$\backslash$hline Markdowns & & $8,500\backslash \backslash$

$\backslash$hline Markups cancellations & & $600\backslash \backslash$

$\backslash$hline Sales & & $83,200\backslash \backslash$

$\backslash$hline Purchases & $56,300$ & $97,300\backslash \backslash$

$\backslash$hline Markdowns cancellations & & $1,700\backslash \backslash$

$\backslash$hline Normal damage & & $2,500\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Answers: $($Please provide your work to support your answers$)$

$\backslash$begin$\{$tabular$\}\{|$l$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{1\}\{|$c$|\}\{$ Method $\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

$($a$)$ Ending inventory $\backslash \backslash$

at retail

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

$($a$)$ Cost$-$to$-$retail ratio $\backslash \backslash$

$($round to $4$ decimal $\backslash \backslash$

place$)$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

$($c$)$ Ending inventory $\backslash \backslash$

at cost

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline $(1)$ Conventional retail & & & $\backslash \backslash$

$\backslash$hline $(2)$ Cost retail & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Answer & Explanation Solved by verified expert

See Answer