×| Your answer is incorrect. I ry again. Presented below is information related

Question

×| Your answer is incorrect. I ry again. Presented below is information related to Tamarisk Company. Cost Retail Beginning inventory Purchases Markups Markup cancellations Markdowns Markdown cancellations Sales revenue $280,390 $283,000 2,178,000 96,800 16,300 33,000 5,500 2,226,000 1,397,000 Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, eg. 7890 and final answer to 0 decimal places, e.g. 28,987.) Ending inventory using conventional retail inventory method Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Ending inventory using conventional retail inventory method is $190,080.

Particulars Cost Retail Beginning inventory $280,390 $283,000 Add: Purchases $1,397,000 $2,178,000 Total $1,677,390 $2,461,000 Add: Net markup Markup $96,800 Marup cancellations ($16,300) Total $1,677,390 $2,541,500 Less: Net markdowns: Markdowns $33,000 Less: Markdown cancellations ($5,500) Cost of goods available for sales $2,514,000 Less: Sales revenue $2,226,000 Ending inventory at retail $288,000 Cost to retail ratio = 66% ($1,677,390 / $2,541,500) Ending inventory at cost $190,080 ($288,000*66%)

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