Answer: $47,736
Explanation:
GIVEN THE FOLLOWING ;
beginning inventory = $11,700 at cost
Beginning inventory =$18,200 at retail.
Net purchases= $132,188 at cost
Net purchases =$183,700 at retail
Net markups = $9,700
Net markdowns = $6,600
Sales revenue = $134,800.
Ending inventory at cost using conventional retail method ;
Cost total = beginning inventory at cost + net purchases at cost
Cost total = $(11,700 + 132,188) = $143,888
Retail total (after net markups) = beginning inventory at retail + net purchases at retail + net markups
$(18,200+183,700+9700) = $211,600
Cost-to-retail ratio ;
$(143,888 ÷ 211,600) = 0.68 = 68%
Ending inventory at retail :
$211,600-(net markdowns + sales revenue)
$211,600 - $(6600+134800)
$211,600 - $141,400 = $70,200
Ending inventory at cost = 0.68 × $70,200 = $47,736
