PLEASE explain how to get the answer.
Retail Inventory Method
The following information relates to the retail inventory method used by Jeffress Company:
Cost | Retail | ||
---|---|---|---|
Beginning inventory | $11,160 | $18,000 | |
Purchases | 54,600 | 92,400 | |
Freight-in | 840 | — | |
Net additional markups | — | 600 | |
Net markdowns | — | 1,144 | |
Sales | — | 94,056 |
Required:
1 (a). Compute the ending inventory by the retail inventory method using the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
JEFFRESS COMPANY | ||
Calculation of ending inventory by retail inventory method | ||
FIFO | ||
Cost | Retail | |
Purchases | $ | $ |
Freight-in | ||
Markups (net) | ||
Markdowns (net) | ||
$ | $ | |
Beginning inventory | ||
Goods available for sale | $ | $ |
Less: Sales | ||
Ending inventory at retail | $ | |
Ending inventory at cost | $ |
1 (b). Compute the ending inventory by the retail inventory method using the following cost flow assumption: Average cost. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
JEFFRESS COMPANY | ||
Calculation of ending inventory by retail inventory method | ||
Average Cost | ||
Cost | Retail | |
$ | $ | |
$ | $ | |
$ | ||
$ |
1 (c). Compute the ending inventory by the retail inventory method using the following cost flow assumption: LIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
JEFFRESS COMPANY | ||
Calculation of ending inventory by retail inventory method | ||
LIFO | ||
Cost | Retail | |
$ | $ | |
$ | $ | |
$ | $ | |
$ | $ | |
$ | ||
$ |
1 (d). Compute the ending inventory by the retail inventory method using the following cost flow assumption: Lower of cost or market (based on average cost). Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
JEFFRESS COMPANY | ||
Calculation of ending inventory by retail inventory method | ||
Lower of Cost or Market (based on average cost) | ||
Cost | Retail | |
$ | $ | |
$ | $ | |
$ | ||
$ |
2. Which of the following assumption(s) is/are necessary for the retail inventory method to produce accurate estimates of ending inventory?
PLEASE explain how to get the answer. Retail Inventory Method The following information relates to the...
PLEASE explain how to get to the answer too. Retail Inventory Method Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during the year: Cost Retail Inventory, January 1 $29,200 $41,500 Purchases 66,200 101,700 Markups (net) — 2,200 Markdowns (net) — 200 Sales — 86,500 Required: 1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal...
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Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost Retail $ 88,000 $178,000 356,000 578,000 8,800 6,800 10,800 15,800 11,800 2,800 4,867 7,800 538,000 9,800 The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,800. Required: 1. Estimate Sparrow's ending inventory and cost of goods...
On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: 8.33 points Skipped Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Cost Retail $ 47,850 $ 87,000 192,390 365,000 7,000 9,000 342,000 1.04 eBook Print References During 2022, purchases at cost and retail were $239,000 and $478,000, respectively. Net markups, net markdowns, and net sales for the year were $6,000, $7,000, and...
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2018: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost Retail $360,000 $ 510,000 884,000 1,270,000 41,100 54,000 24,000 1,230,000 Estimate ending inventory and cost of goods sold (LIFO). (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.))
Required information [The following information applies to the questions displayed below.] Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021 are as follows: Cost Retail Beginning inventory $ 88,000 $ 178,000 Purchases 356,000 578,000 Freight-in 8,800 Purchase returns 6,800 10,800 Net markups 15,800 Net markdowns 11,800 Normal spoilage 2,800 Abnormal spoilage 4,867 7,800 Sales 538,000 Sales returns 9,800 The company records sales net of employee discounts. Employee discounts for 2021...