Question

Exercise 9-21 Presented below is information related to Swifty Company. Cost $225,045 1,380,000 Beginning inventory Purchases Markups Markup cancellations Markdowns Markdown cancellations Sales revenue Retail $279,000 2,108,000 96,100 13,800 35,000 4,500 2,167,000 Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to o 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

Answer

Ending Inventory using conventional retail inventory method

$        176,670.00

--Working

Conventional Retail Method
	Cost	Retail	Cost to Retail Ratio	Working
Beginning Inventory	$        225,045.00	$        279,000.00
Plus: Purchases	$    1,380,000.00	$    2,108,000.00
Net Markups		$          82,300.00
	$    1,605,045.00	$    2,469,300.00
Less: Net MarkDowns		$          30,500.00
Goods Available for sale	$    1,605,045.00	$    2,438,800.00
Cost to retail Percentage			65.00%	( 1605045 / 2469300 ) x 100
Less: Net Sales		$    2,167,000.00
Estimated ending inventory at retail		$        271,800.00		2438800 - 2167000
Estimated ending Inventory at cost	$        176,670.00 ANSWER			271800 x 65%