Presented below is information related to Marin Company. Cost Retail Beginning inventory $103,820 $278,000 Purchases 1,402,000 2,152,000 Markups 93,600 Markup cancellations 13,900 Markdowns 34,600 Markdown cancellations 5,000 Sales revenue 2,206,000 Compute the inventory by the conventional retail inventory method.

Question

Business

Keshawn Rowe

8 May, 07:24

Presented below is information related to Marin Company. Cost Retail Beginning inventory $103,820 $278,000 Purchases 1,402,000 2,152,000 Markups 93,600 Markup cancellations 13,900 Markdowns 34,600 Markdown cancellations 5,000 Sales revenue 2,206,000 Compute the inventory by the conventional retail inventory method.

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Answers (1)

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Johnathan Reynolds · Answer 1

The ending inventory for Marin comapny is $1664460

Explanation:

Solution

An Inventory is computed by using the conventional retail inventory method. which is statted belwo:

Inventory computed for Marin Company

Cost Retail

Beginning of Inventory $103,820 $278,000

Purchases 1,402,000 2,152,000

Total 1505820 243,000

Add: Net Markups

Markups 93,600

Markup cancellations - 13,900

79700

Total 1505820 2509700

Deduct: Net Markdown

Markdown 34,600

Markdown cancellation - 5,000

29,600

Sales price of goods 2480100

Sales revenue 2,206,000

The retail ending is 274,100

Thus,

The retail cost ratio is = 1505820 / 2509700 = 60%

Hence, the cost of Ending inventory becomes = 274,100 * 60%

= $1664460.