Brief Exercise 9-8 Boyne Inc. had beginning inventory of $12,700 at cost and $24

Question

Brief Exercise 9-8

Boyne Inc. had beginning inventory of $12,700 at cost and $24,900 at retail. Net purchases were $120,620 at cost and $186,400 at retail. Net markups were $10,900; net markdowns were $7,400; and sales revenue was $153,600. Compute ending inventory at cost using the conventional retail method. (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 using the conventional retail method

Brief Exercise 9-8

Boyne Inc. had beginning inventory of $12,700 at cost and $24,900 at retail. Net purchases were $120,620 at cost and $186,400 at retail. Net markups were $10,900; net markdowns were $7,400; and sales revenue was $153,600. Compute ending inventory at cost using the conventional retail method. (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 using the conventional retail method

$

Explanation / Answer

Cost retail Beginning inventory 12700 24900 Purchase 120620 186400 Total 133320 211300 Markups 10900 Total 133320 222200 Less markdowns (7400) Less sales (153600) Ending inventory at retail 61200 Ending inventory at cost(133320×61200/222200) 36720

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