Cindy Lou Linens uses the conventional retail method to estimate its ending inve

Question

Cindy Lou Linens uses the conventional retail method to estimate its ending inventories. The company records sales net of employee discounts. The following partial data has been summarized for the year ended December 31, 2018 Cost Retail 375,468 $ 646,000 1, 322,000 2,254,000 Inventory, January 1 Purchases Net markups Net markdowns Normal spoilage Employee discounts Net sales Inventory, Dec. 31 47,300 42,300 74,700 1,958,000 815,100 472,758 Required Compute the net markups for Cindy Lou Linens during 2018 Net markups

Explanation / Answer

NET MARKUP - $ 37,400

Inventory - Jan 1               6,46,000 Net Purchase            22,54,000            29,00,000 Net Markdown                 -47,300 Normal Spoilage                 -42,300 Employee Discount                 -74,700 Net Sale           -19,58,000               7,77,700 Ending Inventory               8,15,100 Net Mark up                  37,400

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