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lesantik [10]
3 years ago
11

Fashion house uses the retail method to estimate ending inventory in his monthly financial statements the following information

is available for the month end of July 1 sales 200,000 immature July 1 171,000 and 300,000 net purchases 90,000 and 150,000 goods available for sale 261,000 and 450,000 using the retail method
Business
1 answer:
IgorC [24]3 years ago
4 0
If we used the retail method to estimate the ending inventory first we get the given of the problem that can be used in solving.
 Given
  Sales - 200,000
  Goods available for sale - 261,000 (cost) & 450,000 (retail) 

First, we need to get the cost of retail ratio. the formula is 
 Cost to Retail ratio= Cost/ Retail
           261,000
CRR= -------------   =   0.58
           450,000

Next is to get the ending inventory by following this steps
                                                              Cost             Retail
Cost of Goods Available for Sale    $261,000        $450,000
- Sales                                                                        $200,000
                                                                                  ------------------
Ending Inventory                                                        $250,000
x Cost to Retail Ratio                                                           .58
                                                                                  ------------------
Ending Inventory                                                       $145,000

So, the estimated ending inventory for the month of July is $145,000. 
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Mashcka [7]

Answer:D.$14,100 gain

Explanation:

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4 0
3 years ago
Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Pro
maw [93]

Answer:

$147,400

Explanation:

The computation of the cost of goods manufactured is shown below:

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5 0
2 years ago
The following information relates to the manufacturing operations of the JNR Printing Company for the year: Beginning Ending Raw
grin007 [14]

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Explanation:

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Agreeing on that and rearranging the formula we will have,

Raw Material purchased during the year = Raw Material used during the year + Ending Raw Material Inventory - Opening Raw Material Inventory

Slotting in the figures we will then have,

Raw Material purchased during the year = 114,000 + 56,000 - 53,000

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8 0
3 years ago
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asambeis [7]

Answer:

b. July

Explanation:

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8 0
3 years ago
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