The following data concerning the retail inventory method are taken from the financial records of Dav...
The following data concerning the retail inventory method are taken from the financial records of Dav Company.
|
Cost |
Retail |
|||
| Beginning inventory |
$ 204000 |
$ 288000 |
||
| Purchases |
904000 |
1360000 |
||
| Freight-in |
24800 |
— |
||
| Net markups |
— |
80800 |
||
| Net markdowns |
— |
56800 |
||
| Sales |
— |
1424000 |
If the ending inventory is to be valued at approximately the lower
of cost or market, the calculation of the cost-to-retail ratio
should be based on goods available for sale at (1) cost and (2)
retail, respectively of
1. $1132800 and $1728800.
2. $1132800 and $1672000.
3. $1132800 and $1648000.
4. $1108000 and $1648000.
A firm uses the dollar value LIFO retail method and has $2,000 in beginning inventory at retail at the beginning of the current year. The base year equivalent of this amount is $1,600. The base year index is 1.00. The beginning inventory reported in the Balance Sheet is $800. During the current year, the firm purchased $12,000 of inventory at cost and marked that up to $40,000. Sales for the year were $28,000. The relevant ending price index is 1.60. What amount does this firm report as inventory in its Balance Sheet at the end of the current year?
1. $4,286
2. $13,440
3. $4,232
4. $4,200
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The following data concerning the retail inventory method are
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Freight-in
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Net markups
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Net markdowns
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Roberson Corporation uses a periodic inventory system and the
retail inventory method. Accounting records provided the following
information for the 2016 fiscal year:
Cost
Retail
Beginning inventory
$
315,000
$
590,000
Net purchases
716,000
1,275,000
Freight-in
14,000
Net markups
35,000
Net markdowns
8,000
Normal spoilage
5,000
Net sales
1,490,000
The company records sales to employees net of discounts. These
discounts totaled $34,000 for the year.
Estimate ending inventory and cost of goods sold using the
conventional method.
Cost Retail Cost-to-...
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