Strategic Plan 2016 - 2018 Boutique Build Australia

Presented below is information related to Ricky Henderson Company.

myrzilka [38]

The ending inventory using conventional retail inventory method is $170,100.

Ricky Henderson Company Ending inventory

Cost Retail

Beginning inventory $200,000 $280,000

Add Purchases $1,375,000 $2,140,000

Total $1,575,000 $2,420,000

Markups $95,000

Markup cancellations ($15,000)

Net markup $80,000

($95,000-$15,000)

Total $1,575,000 $2,500,000

($2,420,000+$80,000=$2,500,000)

Markdowns $35,000

Markdown cancellations ($5,000)

Net markdown ($30,000)

($35,000-$5,000)

Sales price of goods available $2,470,000

($2,500,000-$30,000)

Less Sales revenue ($2,200,000)

Ending inventory at retail $270,000

($2,470,000-$2,200,000)

Second step is to calculate the Cost-to-retail ratio using this formula

Cost-to-retail ratio=Cost of goods sold available/Retail price of goods available+ Net markup

Let plug in the formula

Cost-to-retail ratio=$1,575,000/($2,420,000+$80,000)

Cost-to-retail ratio=$1,575,000/$2,500,000

Cost-to-retail ratio=0.63

Third step is to calculate the ending inventory at cost (lower of cost or market) using this formula

Ending Inventory at cost =Cost-to-retail ratio× Ending inventory at retail

Let plug in the formula

Ending Inventory at cost=0.63×$270,000

Ending Inventory at cost =$170,100

Inconclusion the ending inventory using conventional retail inventory method is $170,100.

Learn more here:brainly.com/question/15776072

7 0

3 years ago

Nonprice competition refers to:

umka21 [38]

Answer: Option C

Explanation: Non price competition can be defined as the business strategy under which one entity tries to distinguish its commodity offered from another entity in the market with the help of advertising and promotion etc.

Non price competition is generally seen in the oligopoly market structure. The difference between two products in an oligopoly having non price competition is based on the design or workmanship of the manufacturer.

6 0

4 years ago

Bramble Corp. applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under-

ddd [48]

Answer:

$11,000 under applied

Explanation:

To compute the under or over applied overhead, we need to find out the predetermined overhead rate

Predetermined overhead rate = Total estimated manufacturing overhead ÷ Estimated machine hours

= $4,100,000 ÷ 500,000

= $8.2

Then, the overhead applied is;

= Actual machine hours × Predetermined overhead rate

= 495,000 × $8.2

= $4,059,000

Now, the under applied or over applied overhead is

= Actual annual overhead cost - Applied overhead

= $4,070,000 - $4,059,000

= $11,000 under applied

3 0

3 years ago

What is gained by using the circular flow diagram to illustrate gdp

MariettaO [177]

Gdp? explain more please

4 0

3 years ago

A good’s price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are p

marin [14]

Answer: The correct answer is "(B) Amputation procedures for diabetes sufferers".

The price elasticity of demand measures the degree of response of the quantity demanded of a good, given the change in the price of that good.

The demand for a good or service is less elastic when, given a change in the price, the demand varies in a smaller amount and the demand for a good or service is more elastic when, before a change in the price, the demand varies by greater or equal. Quantity than the price.

Between a diamond necklace and amputation procedures for patients with diabetes it is clear that the demand for amputation procedures for patients with diabetes is less elastic than that of a diamond necklace, since being a consequence of a disease and being treated of the health of the people the demand varies little or very little before a change in the price. On the other hand, a diamond necklace is a luxurious asset, which is not of extreme necessity for people.

7 0

3 years ago