Homework Answers
Ans :
Freight -in increases the cost to retail ratio when using the conventional retail method.
Cost to retail ratio is calculated using the following formula :
Cost to retail ratio = A + B / C + D
Where,
A is the cost of begning inventory
B is the cost of inventory purchased including incidental costs such as freight - in,
C is the retail value of begning inventory
D is the retail value of goods purchased during the period
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What is the effect of freight-in on the cost-to-retail ratio when using the conventional retail method?...
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If the conventional retail method is used to approximate lower-of-cost-or-market measurement, which of the following describes the proper treatment of net additional markups and markdowns in the cost- retail ratio calculation? O A. Net markups and markdowns should both be excluded OB. Net markups and markdowns should both be included OC. Net markups should be included, and net markdowns should be excluded OD. Net markups should be excluded, and net markdowns should be included
Blossom Inc uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost retail were $403500 ($6040001. purchases during the current year at cost (retail) were $3008000 (55393600, freight in on these purchases totaled $169500, sales during the current year totaled $4866000, and net markups were $424000. What is the ending inventory value at cost? Hint Round intermediate calculation to 3 decimal places, eg, 0635 and final answer to decimal places O 51012696...
Estimating Inventory Using Retail Inventory Method-Conventional Retail-Mart values its inventory using the conventional retail inventory method. It discloses the following data for the month of June 2020. Selling Price Cost Inventory, June 1 $53,800 $80,000 Markdowns 21,000 Markups 29,000 Markdown cancellations 10,000 Markup cancellations 9,000 Purchases 173,200 223,600 Sales 250,000 Purchase returns and allowances 3,000 3,600 Sales returns and allowances 10,000 Compute estimated inventory at June 30, 2020, using the conventional retail inventory method.
Requirement 1: ALQUIST COMPANY Conventional Retail Method $ $ Beginning inventory Plus: Purchases Freight-in Plus: Net markups Cost 100,000 1,387,000 10,000 Retail 150,000 2,000,000 . 300,000 2,450,000 Cost-to-retail percentage: 1,497,000 (150,000 2,300,000 (15.000) Related Less: Net markdowns Goods available for sale Less: Normal shrinkage Sales: Sales to customers Sales to employees Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 1,750,000 250,000 (62,500) 2.285.000 <- Try again $ 1,361,508 e-Correct
Estimating Inventory Using Retail Inventory Method Conventional Retail-Mart values its inventory using the conventional retail inventory method. It discloses the following data for the month of June 2020. Cost $53,800 Inventory, June 1 Markdowns Markups Markdown cancellations Markup cancellations Purchases Sales Purchase returns and allowances Sales returns and allowances Selling Price $80,000 21,000 29,000 10,000 9,000 223,600 250,000 3,600 10,000 173,200 3,000 Compute estimated inventory at June 30, 2020, using the conventional retail inventory method.
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