Question

Can someone please explain why my answer is incorrect? And what is the correct answer

Exercise 9-22 x Your answer is incorrect. Try again. The records of Sage's Boutique report the following data for the month of April. Sales revenue Sales returns Markups Markup cancellations $103,700 2,100 9,600 1,600 8,700 3,000 2,400 Purchases (at cost) Purchases (at sales price) Purchase returns (at cost) Purchase returns (at sales price) Beginning inventory (at cost) Beginning inventory (at sales price) $50,700 95,600 2,100 3,200 26,376 48,400 Markdowns Markdown cancellations Freight on purchases Compute the ending inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.) X Ending inventory using conventional retail inventory method 25177

Answer 1

	Cost	Retail	cost to retail ratio
Beginning inventory	26376	48400
Add:Purchase	50700	95600
Less:Purchase return	(2100)	(3200)
Freight on purchase	2400
Markup		9600
less:Markup cancellations		(1600)
Total	77376	148800	77376/148800= .52 or52%
Markdown		(8700)
Markdown cancellations		3000
Total	77376	143100
less:Sales net of sales return		(101600)   [103700-2100]
Ending inventory at retail		41500

Ending inventory at cost =Ending inventory at retail *cost to retail ratio

                         = 41500*52%

                         = 21580