Problem 9-9 Presented below is information related to Shamrock Inc. Cost Retail

Question

Problem 9-9 Presented below is information related to Shamrock Inc. Cost Retail Inventory, 12/31/17 Purchases Purchase returns Purchase discounts Gross sales revenue Sales returns Markups Markup cancellations Markdowns Markdown cancellations Freight-in Employee discounts granted Loss from breakage (normal) $251,300 962,468 58,800 18,000 $387,300 1,455,600 78,800 1,421,800 98,300 117,600 40,500 45,700 20,200 41,400 7,900 4,500 Assuming that Shamrock Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2018. (Round ratios for computational purposes to 0 decimal places, e.g 7896 and final answer to 0 decimal places, eg. 28,987.) Ending inventory using the conventional retail inventory method Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Cost to retail ratio 1,178,368/1,828,800 64%

ending inventory at cost 307,072 (479800*64/100)

Cost Retail Beginning inventory $251,300 $387,300 Purchases 962,468 1,455,600 less returns 58,800 78,800 discounts 18,000 885,668 0 1,376,800 Freight 41,400 less employees discount granted 7,900 loss from breakage 4,500 1,178,368 1,751,700 Add net marks up 117,600 marks cancellations (40,500) 77,100 total 1178368 1,828,800 Deduct Net mark down 45700 Markdown cancellation (20,200) 25,500 Sale price of goods available 1,803,300 Sales less returns (1,421,800-98,300) 1,323,500 ending inventory 479,800

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.