Question

Question 11 --/1 View Policies Current Attempt in Progress The records of Pronghorn's Boutique report the following data for the month of April. Sales revenue $107,400 $44,200 Purchases (at cost) Purchases (at sales price) Sales returns 1,900 83,000 Markups 10,300 Purchase returns (at cost) 1,900 Markup cancellations 1,400 Purchase returns (at sales price) 3,000 Markdowns 8,600 Beginning inventory (at cost) 22,312 Markdown cancellations 2,700 Beginning inventory (at sales price) 42,300 Freight on purchases 2,300 Compute the ending inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, eg. 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory using conventional retail inventory method $ e Textbook and Media Attempts: 0 of 3 used Save for Later Submit Answer

Answer 1

Answer-The ending inventory using the conventional retail method is =$10098.

Explanation-

Cost to retail ratio = ($66912/$131200)*100

= 51%

Ending inventory using the conventional retail method =$19800*51%

=$10098

Particulars	Cost		Retail
	$	$	$
Beginning Inventory	22312		42300
Purchases	44200		83000
Purchase returns	-1900		-3000
Freight on purchases	2300
Total	66912		122300
Add:- Net markups:			8900
Markups		10300
Markup cancellations		-1400
	66912		131200
Less:-Net markdowns:			5900
Markdowns		8600
Markdown cancellations		-2700
Sales price of goods available			125300
Less:-Net sales		($107400-1900)	105500
Ending inventory at retail			19800