Reference no: EM133692543

Fashion Merchandising, Planning, and Control

Question 1. In January, a book inventory indicates a BOM stock for the petite sportswear department of $267,000. An EOM January physical inventory count reflects an inventory figure of $245,000. What is the opening book inventory figure for the beginning of February for the new retail fiscal year?
A) $245,000.00
B) $267,000.00
C) $512,000.00
D) $32,000.00

Question 2. Calculate the June BOM inventory for Lacey's department store fashion accessories department if May BOM inventory is $4,144, May sales are $1,128, May markdowns are $511, May returns to vendor are $254, May receipts are $968 and transfers from the New Jersey store is $335.
A) $3,219.00
B) $3,808.00
C) $3,554.00
D) $7,340.00

Question 3. Find the August BOM for the Men's pant department given the following information:
July BOM $314,600
July Sales $37,750
July Markdowns 42.0%
Transfers to the Outlet division are $5,860
July Receipts are $62,300
"
A) $436,365.00
B) $317,435.00
C) $323,295.00
D) $307,124.00

Question 4. Which of the following causes can result in a shortage?
A) Theft
B) Incorrect pricing of product
C) Sales associates incorrectly ringing sales
D) All of the above

Question 5. What would the planned shortage dollars be for the Coat department if the planned net sales are $1,770,000 and the planned shortage percentage is 1.9%?

A) $1,803,630.00
B) $19,293.00
C) $33,630.00
D) $1,736,370.00

Question 6. Calculate the shortage percentage for the Cosmetics department if the shortage dollars are $406,000 and net sales are $13,500,000.

A) 30.01%
B) 54.81%
C) 33.25%
D) 3.01%

Question 7. If your January closing book BOM inventory is $550,100 and the physical inventory counted is $580,650, is there a shortage or overage, and by how much in dollars? What is the shortage or overage percentage if annual net sales are $1,272,900?

A) Shortage, 2.4%
B) Overage, 2.4%
C) Shortage, 1.1%
D) Overage, 1.1%

Question "8. Calculate the February book BOM for the shoe department if:
January sales are $688,000
January markdowns are 75.0%
January receipts are $1,155,000
January returns to vendor are $136,000
January BOM is $2,956,000
"

A) $2,771,000.00
B) $5,451,000.00
C) $4,147,000.00
D) $1,616,000.00

Question 9. Continuing from problem 8, Inventory was taken and the count was $2,316,000. Is there a shortage or overage and by how much in dollars and percentage if the net sales are $13,350,000?

A) Shortage, $814,350.00, 6.10 %
B) Overage, $814,350.00, 6.10%
C) Shortage, $455,000.00, 3.41%
D) Overage $455,000.00, 3.41%

Question 10. Opening inventory at retail for a sneaker department is $575,000. Purchases retail for May are $290,000, net sales are $150,000, markdowns are $46,000, returns to vendors are $10,000, transfers (transfers out) to the outlet stores are $15,000, and employee discounts are $4000. Find the closing retail book inventory at the end of May.

A) $653,000.00
B) $644,000.00
C) $640,000.00
D) $670,000.00

Question 11. The advantage of the retail method of inventory is:
A) It permits control over profit because figures for markup obtained and markdowns frequently are available
B) It simplifies the physical inventory process
C) It provides a book inventory where discprepancies in stock can be identified and corrected
D) All of the above

Question 12. Sales in the cosmetic department for last year were $380,000. This year's sales are planned at $395,200. What is the planned sales percentage of increase or decrease?

A) -3.80%
B) 3.80%
C) 4.00%
D) -4.00%

Question 13. The denim department sales were $319,200. The department is 840 square feet. What are the sales per square foot that were generated for the denim department? Please list your answer to decimal places.
Sales/Sq Ft.

Question 14. The owner of a dress boutique wants to buy dresses with a retail value of $115,000.00. She has already purchased 80 dresses at a cost of $62.50 each that will retail for $150.00 each. What markup % must she obtain on the remaining dresses to achieve a 55% markup goal for the total purchase? Please list your answer to two decimal places.

Question 15. At the beginning of August the girl's 7-14 buyer has an opening inventory of $650,000 at retail with a markup of 62.0%. The fall season to date purchases amounted to $500,000 at retail with a 65.0% markup. Find the cumulative markup percentage achieved. Please list your answer to two decimal places.

Question 16. The shoe buyer plans to promote flip-flop sandals at $24.99. The buyer needs to purchase 10,000 flip-flops for the event. 6,000 flip-flop sandals have been purchased at a cost of $11.50. The planned markup for the event is 59.0%. What will be the average cost (unit) of the remaining sandals?

Question 17. Ellen's department store is opening in a new mall about 10 miles from an existing location. Therefore, the existing mall location sales are being planned at a 7.5% decrease. If the sales at the existing mall store were $6,400,000, what would the new sales plan be?

A) $480,000.00
B) $6,880,000.00
C) $5,920,000.00
D) $5,540,000.00

Question 18. Handbag sales for April are $3,240,000, which represents 18% of the total season. Calculate the total spring sales for handbags and June's monthly sales if June's monthly sales percentage is 15.5%.

A) $2,610,000.00
B) $3,240,000.00
C) $2,875,000.00
D) $2,790,000.00

Question 19. A budget that coordinates sales and stocks is called which of the following?
A) Income Statement
B) Balance Sheet
C) Ledger
D) Merchandise Plan

Question 20. The merchandise dollar plan is an important tool to the buyer because:
A) It provides a tool that plans, forecasts, and controls the purchase and sales of merchandise.
B) It helps with analysis to achieve the gross margin and net profit.
C) It helps to review history in order to repeat or improve prior successes and avoid failures.
D) All of the above