am. 127. Terzi Department Store uses the retail inventory method to estimate its monthly ending inventories. Thefollowing information is available for the two of its departments at August 31, 2020.Sporting GoodsCostRetailJewelry andCosmeticsCostRetailNet Sales€1,010,000Purchases€ 675,0001,066,000€ 639,000€ 1,150,0001,158,000Purchase returns26,00040,00010,00020,000Purchase discounts12,3608,860Freight-in9,0007,000Beginning Inventory47,36074,00032,86062,000At December 31, Terzi Department Store takes a physical inventory at retail. The actual retail values ofthe inventories in each department are Sporting Goods €85,000 and Jewelry and Cosmetics €52,000.a. Determine the estimated cost of the ending inventory for each department on August 31, 2020,using the retail method.b. Compute the ending inventory at cost for each department at December 31, assuming the cost-to-retail ratios are 60% for Sporting Goods and 54% for Jewelry and Cosmetics.

It is the stock held for sale to customers. The inventory comprises of raw materials, work in…

Terzi Department Store uses the retail inventory method to estimate its monthly ending inventories. The following information is available for the two of its departments at August 31, 2020. Sporting Goods Jewelry and Cosmetics Cost Retail Cost Retail Net Sales €1,010,000 €1,150,000 Purchases € 675,000 1,066,000 € 639,000 1,158,000 Purchase returns 26,000 40,000 10,000 20,000 Purchase discounts 12,360 8,860 Freight-in 9,000 7,000 Beginning Inventory 47,360 74,000 32,860 62,000

Terzi Department Store uses the retail inventory method to estimate its monthly ending inventories. The following information is available for the two of its departments at August 31, 2020. Sporting Goods Jewelry and Cosmetics Cost Retail Cost Retail Net Sales €1,010,000 €1,150,000 Purchases € 675,000 1,066,000 € 639,000 1,158,000 Purchase returns 26,000 40,000 10,000 20,000 Purchase discounts 12,360 8,860 Freight-in 9,000 7,000 Beginning Inventory 47,360 74,000 32,860 62,000

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

See similar textbooks

Similar questions

On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was 508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was 305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
At December 31, 2019, the following information was available from Crisford Companys books: Sales for the year totaled 110,600; markdowns amounted to 1,400. Under the approximate lower of average cost or market retail method, Crisfords inventory at December 31, 2019, was: a. 30,800 b. 28.000 c. 21,560 d. 19,600
Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on April 27 and (b) the inventory on April 30.
Calculate the cost of goods sold dollar value for A65 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
The moving average inventory cost flow assumption is applicable to which of the following inventory systems? Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on hand on January 1, 2019, costing 18 each. Purchases and sales of calculators during the month of January were as follows: City uses a periodic inventory system. According to a physical count, 150 calculators were on hand at January 31, 2019.
Under the periodic inventory system, what account is debited when an estimate is made for the cost of merchandise inventory sold this year, but expected to be returned next year? (a) Estimated Returns Inventory (b) Sales Returns and Allowances (c) Merchandise Inventory (d) Customer Refunds Payable
Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31.
Retail Inventory Method The following data were available from Hegge Department Stores records for the year ended December 31, 2019: Required: Using the retail method, what is the estimate of the merchandise inventory at December 31, 2019, valued at the lower of cost or market: Round the cost-to-retail ratio to 3 decimal places.
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
Jessie Stores uses the periodic system of calculating inventory. The following information is available for December of the current year when Jessie sold 500 units of inventory. Using the FIFO method, calculate Jessies inventory on December 31 and its cost of goods sold for December.
Jessie Stores uses the periodic system of calculating inventory. The following information is available for December of the current year when Jessie sold 500 units of inventory. Using the FIFO method, calculate Jessies inventory on December 31 and its cost of goods sold for December. RE7-11 Using the information from RE7-10, calculate Jessie Storess inventory on December 31 and its cost of goods sold for December using the LIFO method.