Zhang Shoe Store uses the retail inventory method for its two departments: men's shoes and women's shoes.
Question:
Zhang Shoe Store uses the retail inventory method for its two departments: men's shoes and women's shoes. The following information is obtained for each department:
_________________ __Item Men’s Shoes Women’s Shoes
Beginning inventory at cost………………...…..$ 36,000…………………..$ 45,000
Beginning inventory at retail…………………...58,050…………………….95,750
Cost of goods purchased…………………...…...216,000…………………...315,000
Retail price of goods purchased…………........348,400…………………...670,200
Net sales…………………………….............…………365,000…………………...635,000
Instructions
Calculate the estimated cost of the ending inventory for each shoe department under the retail inventory 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:
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow