1. BOPF Crop. Uses the Retail Inventory Method to estimate their inventory. Their beginning inventory at cost (retail) was $2,292,000 ($3,576,000), purchase discounts were $458,000 ($802,000), and freight in was $206,000. They also reported net markups of $3,484,000, net markdowns of $4,790,000, and net sales of $31,102,000. What is the cost-retail ratio for the conventional approach?

2. Which inventory method avoids the extremes of low and high costs over the year?

3. Under which inventory method will ending inventory and COGS be the same under both the perpetual and periodic systems?

4. Under the periodic inventory system, what effect will including goods in transit that were purchased f.o.b. destination in purchase have on net income?

5. Why would a company factor its receivables to another company?

Answer rating: 100% (QA)

Costtoretail ratio is equal to the total cost of goods available for sale divided by the reta... View the full answer