Exercise 9-7 Riverbed Company follows the practice of pricing its inventory at t

Question

Exercise 9-7 Riverbed Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis Cost per Estimated Selling Price Cost of Completion and Disposal Item No. Quantity Unit Replace 1320 1,800 1333 1,500 1426 1,400 1437 1,600 1510 1,300 1522 1,100 1573 3,600 1626 1,600 Cost to Normal Profit $1.40 0.56 1.12 1.01 0.67 0.56 0.56 1.12 $3.58 $3.36 2.58 3.02 5.04 4.03 2.52 3.36 2.02 5.26 3.47 2.24 3.02 1.79 5.82 $5.04 3.92 5.60 3.58 3.64 4.26 2.80 6.72 $0.39 0.56 0.45 0.28 0.90 0.45 0.84 0.56 From the information above, determine the amount of Riverbed Company inventory The amount of Riverbed Company's inventorys

Explanation / Answer

Particulars

Cost ($)

Retail ($)

Beginning Inventory

250500

391100

Plus: Purchases

875910

1488200

Less: Purchase returns

(61100)

(78700)

Less : Purchase discounts

(17600)

-

Plus: Freight-In

42400

-

Totals

1090110

1800600

Add: net markups

Markups

-

118700

less markup cancellations

(39800)

78900

Totals

1090110

1879500

Deduct

Markdowns

(44900)

less markdown cancellations

20100

(24800)

subtotal

1854700

Inventory losses

(4000)

Employee discounts

(8000)

Sales price of goods available for sale

1842700

Deduct net sales

Gross sales

1414700

Sales returns

(98000)

1316700

Ending Inventory at retail

526000

Cost to retail ratio ()

60%

Ending Inventory at cost

$ 315600

cost to retail ratio = 1090110/1800600*100 = 60%

Ending Inventory at retail

526000

Particulars

Cost ($)

Retail ($)

Beginning Inventory

250500

391100

Plus: Purchases

875910

1488200

Less: Purchase returns

(61100)

(78700)

Less : Purchase discounts

(17600)

-

Plus: Freight-In

42400

-

Totals

1090110

1800600

Add: net markups

Markups

-

118700

less markup cancellations

(39800)

78900

Totals

1090110

1879500

Deduct

Markdowns

(44900)

less markdown cancellations

20100

(24800)

subtotal

1854700

Inventory losses

(4000)

Employee discounts

(8000)

Sales price of goods available for sale

1842700

Deduct net sales

Gross sales

1414700

Sales returns

(98000)

1316700

Ending Inventory at retail

526000

Cost to retail ratio ()

60%

Ending Inventory at cost

$ 315600

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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