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Homework answers / question archive / The following information are given about indian Trading Co

The following information are given about indian Trading Co

Accounting

The following information are given about indian Trading Co. Net sales $504,000: Net purchases $350.000 at retail price (cost $250.000): Markups $116,000: Markup cancellations $42.000 Markdowns 556.000; Markdown cancellations $22.000; Freight-in 530,000: Beginning inventory 5168,000 at retail price (cost $99.000). The company is using the retail method (the conventional method) REQUIRED: Calculate the following 1. The available for sale inventory at COST and at RETAIL 2. The net Markups and the net Markdowns 3. the cost-to-retail ratio. 4. Ending inventory at cost. For the toolban press ALT+F10 (PC or ALTEFN+F10 (Mac),

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Answer

  • Working with Requirements asked

Conventional Retail Method

 

Cost

Retail

Cost to Retail Ratio

Working

  

Beginning Inventory

$99,000.00

$168,000.00

      

Plus: Purchases

$250,000.00

$350,000.00

      

           Freight In

$30,000.00

$0.00

      

           Net Markups [Answer #2]

$0.00

$74,000.00

  

$116000 – 42000

  
 

$379,000.00

$592,000.00

      

Less: Net MarkDowns

 

$34,000.00

  

$ 56000 - 22000

  

Goods Available for sale [Answer #1]

$379,000.00

$558,000.00

      
 

 

 

      

Cost to retail Percentage [Answer #3]

 

 

64.02% or 64%

( 379000 / 592000 ) x 100

  
 

 

 

      

Less: Net Sales

 

$504,000.00

      

Estimated ending inventory at retail

 

$54,000.00

  

558000 - 504000

  

Estimated ending Inventory at cost using conventional retail inventory method [Answer #4]

$34,560.

 

  

54000 x 64%

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