Goods available for sale: Beginning inventory Net purchases Net markups Net markdowns Total goods available for sale Net sales Net markups Net markdowns Cost Retail $ 220,500 $ 304,500✔ 1,249,500✔ 1,732,500 63,000 0 0✔ 0✔ $ 1,470,000 ✓ 2,100,000 1,659,000 x 0
Goods available for sale: Beginning inventory Net purchases Net markups Net markdowns Total goods available for sale Net sales Net markups Net markdowns Cost Retail $ 220,500 $ 304,500✔ 1,249,500✔ 1,732,500 63,000 0 0✔ 0✔ $ 1,470,000 ✓ 2,100,000 1,659,000 x 0
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 12E: Retail Inventory Method The following data were available from Hegge Department Stores records for...
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DO NOT GIVE SOLUTION IN IMAGE FORMAT
![Goods available for sale:
Beginning inventory
Net purchases
Net markups
Net markdowns
Total goods available for sale
Net sales
Net markups
Net markdowns
Estimated ending inventory at retail
0x
Cost
Cost Ratio
Numerator / Denominator =
0x/$
$ 220,500 $ 304,500
1,249,500
1,732,500
63,000
$ 1,470,000 ✓
Retail
Result
Estimated ending inventory at cost: $ 0
0✔
2,100,000
1,659,000 x
21,000 x
0x
. Note: Use the result above EXACTLY as shown to compute the following amount.
x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0507d977-40c4-415e-96d7-be834965d5c0%2F4438fb02-bec2-4931-93ae-161a6adb5f8d%2Fz1stiqr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Goods available for sale:
Beginning inventory
Net purchases
Net markups
Net markdowns
Total goods available for sale
Net sales
Net markups
Net markdowns
Estimated ending inventory at retail
0x
Cost
Cost Ratio
Numerator / Denominator =
0x/$
$ 220,500 $ 304,500
1,249,500
1,732,500
63,000
$ 1,470,000 ✓
Retail
Result
Estimated ending inventory at cost: $ 0
0✔
2,100,000
1,659,000 x
21,000 x
0x
. Note: Use the result above EXACTLY as shown to compute the following amount.
x
![Valuing Inventory Using Conventional Retail Method
At December 31, the following information is available from Palo Company's accounting records. If sales are $1,659,000 and markdowns total $21,000, compute estimated inventory
at December 31 using the conventional retail method.
Inventory January
Purchases
Cost Retail
$220.500 $304500
1.249.500 1,732.500
63.000
Netmarkups
Available for sale $1.470.000 $2,100,000
Note: Use negative signs as appropriate in the following schedule.
Goods available for sale
Beginning eventory
Net purchases
Netmarks
Netmarkdowns
Tetal goods available for sale
Net sales
Net
Estimadanding y
Cost
220.500$ 304.500
1,249.500 1.732.500
63,000
50
Watail
$1,470,000
2,100,000
165/8000
21,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0507d977-40c4-415e-96d7-be834965d5c0%2F4438fb02-bec2-4931-93ae-161a6adb5f8d%2Fjm2952_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Valuing Inventory Using Conventional Retail Method
At December 31, the following information is available from Palo Company's accounting records. If sales are $1,659,000 and markdowns total $21,000, compute estimated inventory
at December 31 using the conventional retail method.
Inventory January
Purchases
Cost Retail
$220.500 $304500
1.249.500 1,732.500
63.000
Netmarkups
Available for sale $1.470.000 $2,100,000
Note: Use negative signs as appropriate in the following schedule.
Goods available for sale
Beginning eventory
Net purchases
Netmarks
Netmarkdowns
Tetal goods available for sale
Net sales
Net
Estimadanding y
Cost
220.500$ 304.500
1,249.500 1.732.500
63,000
50
Watail
$1,470,000
2,100,000
165/8000
21,000
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