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manish singh
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Meditation is a favorite relaxation technique of hyperactive people because mediation can be readily practiced while talking on a cell phone or watching television.
On Sep 28, 2024
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Shannon's Department Store prepares monthly financial statements but only takes a physical count of merchandise inventory at the end of the year. The following information has been developed for the month of July: At Cost At Retail Beginning inventory $36,000$50,000 Merchandise purchases 99,000150,000\begin{array} { l r r } & \text { At Cost } & \text { At Retail } \\\text { Beginning inventory } & \$ 36,000 & \$ 50,000 \\\text { Merchandise purchases }& 99,000 & 150,000\end{array} Beginning inventory Merchandise purchases At Cost $36,00099,000 At Retail $50,000150,000 The net sales for July amounted to $150000.
Instructions
Use the retail inventory method to estimate the ending inventory at cost for July. Show all computations to support your answer.
Instructions
Use the retail inventory method to estimate the ending inventory at cost for July. Show all computations to support your answer.
On Sep 23, 2024
At Cost At Retail Beginning inventory $36,000$50,000 Merchandise purchases 99,000‾150,000 Goods available for sale 135,000‾‾200,000 Net sales 150,000 (1) Ending inventory at retail $50,000(2) Cost to retail ratio =67.5%($135,000÷$200,000).(3) Ending inventory at cost =($50,000×67.5%)=$33,750\begin{array}{lrr} & \text { At Cost } & \text { At Retail } \\\text { Beginning inventory } & \$ 36,000 & \$ 50,000 \\\text { Merchandise purchases } & \underline{99,000} & 150,000 \\\text { Goods available for sale } & \underline{\underline{135,000}} & 200,000 \\\text { Net sales } & & 150,000 \\\text { (1) Ending inventory at retail } & & \$ 50,000\\\text {(2) Cost to retail ratio \(= 67.5 \% ( \$ 135,000 \div \$ 200,000 )\).}\\\text {(3) Ending inventory at cost \(= ( \$ 50,000 \times 67.5 \% ) = \$ 33,750\)}\end{array} Beginning inventory Merchandise purchases Goods available for sale Net sales (1) Ending inventory at retail (2) Cost to retail ratio =67.5%($135,000÷$200,000).(3) Ending inventory at cost =($50,000×67.5%)=$33,750 At Cost $36,00099,000135,000 At Retail $50,000150,000200,000150,000$50,000