Question

WP Student Practice and Question 9 Solutions Manual WileyCelcom View Price Current Altin Progress Presented below is information related to Blossom Company Conferences Collaborations WiePLUS Suport Cost Real Beginning intory SSD $ 200 Purchases net 111250 216200 50119 Narkows Sales Compute the ending inventory at retail Ending Compute acost-to-retail percentage under the following conditions. (Round ratios to 2 decimal places. e. 78.74%) Cost-o-retail percentage (1) Excluding both mar and downs (2) Excluding makabut including down Excluding markdowns but including markup 14) Including both aromad markup Which of the methods in (bl above does the following Provides the most con s tate ofending inventory 21 Provides an approximation of lower-of-cost-o-market used in the conventional retail method Compute ending inventory at lower-of-cost-or-market. (Round ratio to 2 decimal places, s. 78.74% and final answer to O decimal places, es 6.225.) Engines Compute cost of goods sold based on (d). (Round answer to o decimal places, es. 6.225) Cost of goods sold Compute gross margin based on (d). (Round answer too decimal places, s. 6.225.) Grown

Answer 1

1	Ending inventory:
	Particulars	Cost	Retail
	Beginning inventory	56640	99900
	Purchases	111250	216800
	Total inventory available	167890	316700
	Sales		173490
	Closing inventory at retail price = 316700-173490-24768+10119		128561
2	Cost-to-retail percentage
	1. Excluding both markups and markdowns
	Particulars	Cost	Retail
	Beginning inventory	56640	99900
	Purchases	111250	216800
	Total inventory available	167890	316700
	Cost-to-retail percentage = 167890/316700	53.01%
	2.Excluding markups but including markdowns
	Beginning inventory	56640	99900
	Purchases	111250	216800
	Add: Markdowns		24768
	Total inventory available	167890	341468
	Cost-to-retail percentage	49.17%
	3.Excluding markdowns but including markups
	Beginning inventory	56640	99900
	Purchases	111250	216800
	Less: Markups		10119
	Total inventory available	167890	306581
	Cost-to-retail percentage	54.76%
	4.Including both markdowns and markups
	Beginning inventory	56640	99900
	Purchases	111250	216800
	Less: Markups		10119
	Add: Markdowns		24768
	Total inventory available	167890	331349
	Cost-to-retail percentage	50.67%
3	1.By Excluding markups but including markdowns
	2. By including both markups and markdowns
	3. By including markdowns
4	Closing inventory (Retail)	128561
	Closing inventory (Cost) = 128561*0.5301	68150.1861
	Value of closing inventory	68150.1861
5	Opening inventory	56640
	Purchases	111250
	Closing inventory	68150.1861
	Cost of goods sold (56640+111250-68150)	99739.8139
6	Gross margin = (99739.81/173490)	57.49%