Question

Presented below is information related to Sunland CompanyPresented below is information related to Sunland Company. Cost Retail Beginning inventory $131,980 $286,000 Purchases 1,361,000 2,123,000 Markups 95,000 Markup cancellations 15,700 Markdowns 38,400 Markdown cancellations 4,700 Sales revenue 2,216,000 Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory using conventional retail inventory method

Answer 1

Answer:

$238,600

Explanation:

Cost Retail

Beginning inventory $131,980 $286,000

Purchases $1,361,000 $2,123,000

Goods available for sale

$1,492,980 $2,409,000

Add Markups 95,000

Less Markup cancellations (15,700)

($2,409,000+$95,000-$15,700)

Total $1,492,980 $2,488,300

Less Markdowns ($38,400 )

($2,488,300-$38,400) $2,449,900

Add Markdown cancellations $4,700

($2,449,900+$4700) $2,454,600

$1,492,980 $2,454,600

Less Sales revenue ($2,216,000)

($2,454,600-$2,216,000)

Ending Inventory at Retail $238,600