Presented below is information related to Headland Company. Beginning inventory Purchases Markups Markup cancellations Markdowns Markdown cancellations Sales revenue Cost Retail $148,740 $285,000 1,359,000 2,148,000 96,200 16,300 31,800 4,700 2,209,000 Compute the inventory by the conventional retail inventory method. Ending inventory using conventional retail inventory method $
Presented below is information related to Headland Company. Beginning inventory Purchases Markups Markup cancellations Markdowns Markdown cancellations Sales revenue Cost Retail $148,740 $285,000 1,359,000 2,148,000 96,200 16,300 31,800 4,700 2,209,000 Compute the inventory by the conventional retail inventory method. Ending inventory using conventional retail inventory method $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Presented below is information related to Headland Company.
| | Cost | Retail |
|--------------------|------------|------------|
| **Beginning inventory** | $148,740 | $285,000 |
| **Purchases** | 1,359,000 | 2,148,000 |
| **Markups** | | 96,200 |
| **Markup cancellations**| | 16,300 |
| **Markdowns** | | 31,800 |
| **Markdown cancellations**| | 4,700 |
| **Sales revenue** | | 2,209,000 |
Compute the inventory by the conventional retail inventory method.
**Ending inventory using conventional retail inventory method**: $ [ ]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42077dd4-5a93-4885-bc7c-dca1203ecd7a%2F7057cbef-93ec-4000-8f94-4166e27648b7%2Fk4hy73_processed.png&w=3840&q=75)
Transcribed Image Text:Presented below is information related to Headland Company.
| | Cost | Retail |
|--------------------|------------|------------|
| **Beginning inventory** | $148,740 | $285,000 |
| **Purchases** | 1,359,000 | 2,148,000 |
| **Markups** | | 96,200 |
| **Markup cancellations**| | 16,300 |
| **Markdowns** | | 31,800 |
| **Markdown cancellations**| | 4,700 |
| **Sales revenue** | | 2,209,000 |
Compute the inventory by the conventional retail inventory method.
**Ending inventory using conventional retail inventory method**: $ [ ]
Expert Solution
Step 1: Inventory and conventional retail inventory method
Inventory means the material in which the business deals. Inventory can be raw material , work in progress and finished goods in case of manufacturing concern. For trading concern, inventory means the material purchased and sold as it is.
Conventional retail inventory method means where the stock is not calculated by cost of stock in hand but cost value is calculated by applying the percentage of cost to retail to estimated retail price of stock.
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