The records for the Clothing Department of Danny's Discount Store are summarized below for the month of
Question:
The records for the Clothing Department of Danny's Discount Store are summarized below for the month of January.
Inventory, January 1: at retail $25,000; at cost $17,000
Purchases in January: at retail $137,000; at cost $82,500
Freight-in: $7,000 Purchase returns: at retail $3,000; at cost $2,300
Transfers in from suburban branch: at retail $13,000; at cost $9,200
Net markups: $8,000
Net markdowns: $4,000
Inventory losses due to normal breakage, and so on: at retail $400
Sales revenue at retail: $95,000
Sales returns: $2,400
Instructions
(a) Calculate the inventory for this department as at January 31, at retail prices.
(b) Calculate the ending inventory using the lower of cost and net realizable value method
Ending InventoryThe ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
a Cost Retail Beginning inventory 17000 25000 Purchases 82500 137000 Freightin 7000 Purchase ...View the full answer
Intermediate Accounting
ISBN: 978-1119048534
11th Canadian edition Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
