A retailer has a beginning monthly inventory valued at $60,000 at retail and $25,000 at cost. Net purchases during the month are $150,000 at retail and $70,000 at cost. Transportation charges are $7,000. Sales are $150,000. Markdowns and discounts equal $20,000. A physical inventory at the end of the month shows merchandise valued at $10,000 (at retail) on hand. Compute the following: • a. Total merchandise available for sale – at cost and at retail • b. Cost complement • c. Ending retail book value of inventory
A retailer has a beginning monthly inventory valued at $60,000 at retail and $25,000 at cost. Net purchases during the month are $150,000 at retail and $70,000 at cost. Transportation charges are $7,000. Sales are $150,000. Markdowns and discounts equal $20,000. A physical inventory at the end of the month shows merchandise valued at $10,000 (at retail) on hand. Compute the following: • a. Total merchandise available for sale – at cost and at retail • b. Cost complement • c. Ending retail book value of inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A retailer has a beginning monthly inventory valued at $60,000 at retail and $25,000 at cost. Net purchases during the month are $150,000 at retail and $70,000 at cost. Transportation charges are $7,000. Sales are $150,000. Markdowns and discounts equal $20,000. A physical inventory at the end of the month shows merchandise valued at $10,000 (at retail) on hand. Compute the following:
• a. Total merchandise available for sale – at cost and at retail
• b. Cost complement
• c. Ending retail book value of inventory
• d. Stock shortages
• e. Adjusted ending retail book value
• f. Gross profit
Transcribed Image Text:Question # 2:
A retailer has a beginning monthly inventory valued at $60,000 at retail and
$25,000 at cost. Net purchases during the month are $150,000 at retail and
$70,000 at cost. Transportation charges are $7,000. Sales are $150,000.
Markdowns and discounts equal $20,000. A physical inventory at the end of the
month shows merchandise valued at $10,000 (at retail) on hand. Compute the
following:
a. Total merchandise available for sale - at cost and at retail
• b. Cost complement
c. Ending retail book value of inventory
• d. Stock shortages
e. Adjusted ending retail book value
• f. Gross profit
Question # 3:
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