Cost price |
Retail price |
|
Purchases |
$275,120 | $402,300 |
Net markups |
$49,800 | |
Net markdowns |
($108,200) | |
Totals |
$275,120 | $343,900 |
Cost to retail ratio = $275,120 / $343,900 = 80%
Retail price total |
$343,900 |
Beginning inventory |
$98,600 |
Total goods at retail |
$442,500 |
Sales |
($326,300) |
Ending inventory at retail |
$116,200 |
LIFO layer added |
$17,600 |
Ending inventory at cost = Beginning inventory at cost + LIFO layer at cost
= $67,700 + ($17,600*80%)
= $81,780
Late in 2017, Joan Seceda and four other investors took the chain of Marin Department Stores...
Problem 9-13 Late in 2014, Joan Seceda and four other investors took the chain of Pharoah Department Stores private, and the company has just completed its third year of operations under the ownership of the investment group. Andrea Selig, controller of Pharoah Department Stores, is in the process of preparing the year-end financial statements. Based on the preliminary financial statements, Seceda has expressed concern over inventory shortages, and she has asked Selig to determine whether an abnormal amount of theft...