Compute the Ending Inventory at Retail

Assignment Help Accounting Basics
Reference no: EM132760223

Question - A company uses the RETAIL INVENTORY METHOD to compute its ending inventory on December 31, 2020. The data below was available. Unfortunately, the computer did not say whether the items are PLUS or MINUS amounts, so you decide based on what is reasonable.

AT COST AT RETAIL

Beginning Inventory 72,800 98,500

Markdowns 35,000

Markdown cancellations 20,000

Mark ups 73,000

Purchases 219,500 294,000

Purch Returns 4,300 5,500

Sales 345,000

Sales Returns 10,000

PART A: Using the Weighted Average with Lower of Cost or Market (also called the Conventional or Traditional Approach):

What numbers go in the numerator and denominator to compute the Cost ratio?

PART B: Compute the Ending Inventory at Retail and then use your cost ratio from above to compute the estimated Ending Inventory at Cost.

Reference no: EM132760223

Questions Cloud

What is the company enterprise value : A company's free cash flow in the most recent year is $79m and is expected to grow at 3.5% pa in perpetuity. What is the company's enterprise value
What did you learn from this kind of organizations : What did you learn from this kind of organizations - Explain the main managerial four reasons of each for(same companies you write above) its success or failure
Describe the accounting equation : Describe the accounting equation and how it functions in creating and understanding financial statements. Describe each of the components of the Accounting.
Should Polk make the switch and why : Should Polk make the switch? The Polk Corporation is trying to decide whether to switch to a bank that will accommodate electronic funds
Compute the Ending Inventory at Retail : Compute the Ending Inventory at Retail and then use your cost ratio from above to compute the estimated Ending Inventory at Cost
How much is the stock worth today : Quick Buck, Inc. expects to stay in business for 2 more years and then liquidate. Cash Flows are expected to be $450,000 next year and then $790,000 in year 2.
Find the payback period and estimate internal rate of return : Find the payback period. Estimate the internal rate of return. Find the net present value if the minimum acceptable rate of return on investment is 16%.
What will be the break-even-point in sales dollars : The company must incur an additional selling expenses of $10 000 for advertising in 2018, What will be the break-even-point in sales dollars
How has ibm adapted thus far : How has IBM adapted thus far? Have they been successful?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd