Campbell Corporation uses the retail method to value its inventory. The following information is available for...
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Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Retail $290,000 850,000 Cost Merchandise inventory, January 1, 2021 Purchases $200,000 593,380 8,400 Freight-in Net markups Net markdowns 22,000 6,000 810,000 Net sales Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Answer is complete but not entirely correct. Cost-to- Retail Ratio Cost Retail Beginning inventory $ 200,000 290,000 Purchases 593.380 850,000 Freight-in 8,400 Net markups 22,000 1,162,000 Net markdowns (6,000) Goods available for sale 801,780 1,156,000 Cost-to-retail percentage 69.36 % Net sales (810,000) Estimated ending inventory at retail $ 346,000 Estimated ending inventory at cost 239,986 X Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Retail $290,000 850,000 Cost Merchandise inventory, January 1, 2021 Purchases $200,000 593,380 8,400 Freight-in Net markups Net markdowns 22,000 6,000 810,000 Net sales Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Answer is complete but not entirely correct. Cost-to- Retail Ratio Cost Retail Beginning inventory $ 200,000 290,000 Purchases 593.380 850,000 Freight-in 8,400 Net markups 22,000 1,162,000 Net markdowns (6,000) Goods available for sale 801,780 1,156,000 Cost-to-retail percentage 69.36 % Net sales (810,000) Estimated ending inventory at retail $ 346,000 Estimated ending inventory at cost 239,986 X
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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