Question

Presented below is information related to Teal Company. Cost $280,390 1,397,000 Beginning inventory Purchases Markups Markup cancellations Markdowns Markdown cancellations Sales revenue Retail $283,000 2,178,000 96,800 16,300 33,000 5,500 Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory using conventional retail inventory methods

Answer 1

Particulars	Cost	Retail
Beginning Inventory	$280,390	$283,000
Purchases (net)	$1,397,000	$2,178,000
Goods available for sale	$1,677,390	$2,461,000
Add: Markups		$96,800
Less: Markups cancellations		(16,300)
Total	$1,677,390	2,541,500
Less: Markdowns		(33,000)
Add: Markdowns cancellations		5,500
Total	$1,677,390	2,514,000
Less: Sales (net)		(2,226,000)
Ending Inventory at retail		288,000

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