Question

Presented below is information related to Wildhorse Company. Cost $ 58,110 121,450 Beginning inventory Purchases (net) Net markups Net markdowns Sales revenue Retail $101,500 191,400 10,171 25,358 192,300 Compute the ending inventory at retail. Ending inventory Compute a cost-to-retail percentage under the following conditions. (Round ratios to 2 decimal places, e.g. 78.74%) Cost-to-retail percentage (1) Excluding both markups and markdowns. (2) Excluding markups but including markdowns. (3) Excluding markdowns but including markups. (4) Including both markdowns and markups.

Answer 1

price of goods available r_" © Computation of ending inventorey at scatailin - Pareticeless Cost ($) Letreil $ Beginning inuentory 58, 110 101,500 Purchases (het) 121,450 191,400 Netmarkups 19171 Total 179,560 303,071 deg? Net maskdowns (25,358) 277,713 Desr Sales reduenie. (192,300) Ending inventoryioneta $85,913 Ending innentory at retail = $85,413 © Computation of cost to retail percentage under the following conditions ů Excluding both markups and markdowns (61130%) $179,560 - K100 * 179,560x100 $ 101,500+ $191,400 292,900. >61.30% hh li) Excluding markups but including markdowns : (67. 166) 179,560 101,500+ 191,400.--25358. 139560X100 267,542 K60 (iii) excluding markdowns but including markups - (59.25%) >9479560 101500+191400+19171 -> 199,560_x10o => 69.25% 303,071
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(N.) Including both markups and markdowns; (64.664) 7179560 x100 -64.66% 7 277,713 © Provides the most conserwatine estimate og ending inventoufo - Excluding markdowns But including markups. (1) Provides an approximation of lower of Cost or market Excluding markdowns But including markups (iij. Is rised in the conventional rectail method Excluding markdowns Beut including markups. © Computation of ending inuentsy at loweetcost of -mosketa- Ending anuortory = $8543 x 59:2817 10,+80 +50,607:20 © Computation of cost of goods sold based on Ca.). Cost of goods sold - $ 179,560 - $2684$50,687,20 >> $ 128,9526798, © Computation of gross margin based on (d) sales revenue I cost of goods sold Gros margin => $192300 - $128.952-798 ->$63,347, 202