(Retail Inventory Method) The records for the Clothing Department of Sharapova’s Discount Store are summarized below for the month of January.Inventory, January 1: at retail $25,000; at cost $17,000Purchases in January: at retail $137,000; at cost $82,500Freight-in: $7,000Purchase returns: at retail $3,000; at cost $2,300Transfers in from suburban branch: at retail $13,000; at cost $9,200Net markups: $8,000Net markdowns: $4,000Inventory losses due to normal breakage, etc.: at retail $400Sales revenue at retail: $95,000Sales returns: $2,400 Instructions(a) Compute the inventory for this department as of January 31, at retail prices.(b) Compute the ending inventory using lower-of-average-cost-or-market.
(Retail Inventory Method) The records for the Clothing Department of Sharapova’s Discount Store are summarized below for the month of January.Inventory, January 1: at retail $25,000; at cost $17,000Purchases in January: at retail $137,000; at cost $82,500Freight-in: $7,000Purchase returns: at retail $3,000; at cost $2,300Transfers in from suburban branch: at retail $13,000; at cost $9,200Net markups: $8,000Net markdowns: $4,000Inventory losses due to normal breakage, etc.: at retail $400Sales revenue at retail: $95,000Sales returns: $2,400 Instructions(a) Compute the inventory for this department as of January 31, at retail prices.(b) Compute the ending inventory using lower-of-average-cost-or-market.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...
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(Retail Inventory Method) The records for the Clothing Department of Sharapova’s Discount Store are summarized below for the month of January.
Inventory, January 1: at retail $25,000; at cost $17,000
Purchases in January: at retail $137,000; at cost $82,500
Freight-in: $7,000
Purchase returns: at retail $3,000; at cost $2,300
Transfers in from suburban branch: at retail $13,000; at cost $9,200
Net markups: $8,000
Net markdowns: $4,000
Inventory losses due to normal breakage, etc.: at retail $400
Sales revenue at retail: $95,000
Sales returns: $2,400
Instructions
(a) Compute the inventory for this department as of January 31, at retail prices.
(b) Compute the ending inventory using lower-of-average-cost-or-market.
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