Exercise 9-21 Your answer is incorrect. Try again. Presented below is informatio

Question

Exercise 9-21 Your answer is incorrect. Try again. Presented below is information related to Shamrock Company Cost Retail Beginning inventory Purchases Markups Markup cancellations Markdowns Markdown cancellations Sales revenue $275,000 1,356,000 2,161,000 94,700 15,400 36,700 5,200 2,170,000 $379,557 Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, eg. 28,987.) Ending inventory using conventional retail nventory method 456178 Click if you would like to Show Work for this question: Qpen Show Work

Explanation / Answer

Net markups = Mark ups - Markup cancellations

= 94,700 - 15,400 = 79,300

Net markdowns = Markdowns - Markdown cancellations

= 36,700 - 5,200 = 31,500

Beginning inventory and purchases at cost = 379,557 + 1,356,000 = 1,735,557

Beginning inventory, Purchases and net markups at retail = 275,000 + 2,161,000 + 79,300 = 2,515,300

Cost to retail ratio = 1,735,557 / 2,515,300 = 69%

  Ending inventory at cost = 313,800*69% = 216,522.

Beginning Inventory 275,000 Purcahses 2,161,000 Net markups 79,300 Markdowns (31,500) Sales (2,170,000) Ending inventory at retail 313,800

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