The records for the Clothing Department of Marin Fine Clothing are summarized below for the...
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Accounting
The records for the Clothing Department of Marin Fine Clothing are summarized below for the month of May.
Inventory, May 1: at cost $64,000; at retail $98,800
Purchases in May: at retail $106,100; at cost $65,642
Freight-in: $3,300
Purchase returns: at cost $2,400; at retail $2,800
Transfers out to a nearby branch: at retail $8,700; at cost $7,100
Net markups: $5,700
Net markdowns: $3,300
Inventory losses due to normal breakage, etc.: at retail $900
Sales at retail: $109,000
Sales returns: $3,400
a.) Compute the inventory for this department as of May 31, at retail prices.
Ending Inventory at Retail: $_________________
b.) Compute the ending inventory using lower-of-average-cost-or-market. (Round ratios for computational purposes to 0 decimal places, e.g 78% and final answer to 0 decimal places, e.g. 28,987.)
Ending inventory at lower-of-average-cost-or-market: $__________________
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