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Elis [28]
3 years ago
6

Turturro Department Store utilizes the retail inventory method to estimate its inventories. It calculated its cost to retail rat

io during the period at 75%. Goods available for sale at retail amounted to $400,000 and goods were sold during the period for $280,000. The estimated cost of the ending inventory is?
Business
1 answer:
iogann1982 [59]3 years ago
8 0

Answer:

The estimated cost of the ending inventory is $120,000

Explanation:

Retail Inventory method is used to estimate the value of inventory using retail price of the inventory.

Ending inventory is the value of Inventory in store at the end of accounting period. It is calculated as follow

Closing Inventory value = Goods available for sales - Goods sold during the period

As the Inventory is already given in the retail value

Closing Inventory value = $400,000 - $280,000 = $120,000

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b

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3 years ago
Match the term with what most needs to be clarified within the following examples.
leonid [27]

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Definition  

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5 0
3 years ago
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Ket [755]

Answer:

Variable overhead rate variance = $2,870 favorable

Explanation:

Variable overhead rate variance is the difference between the standard cost allowed for variable production overhead and the actual variable cost incurred.

This computed as follows:

                                                                                    $

17,130 hours should have cost ( 17,130 ×7.20)      123336

but did cost                                                            <u>120,466</u>

Variable overhead rate variance                           <u>  2870 </u> Favorable

Variable overhead rate variance = $2,870              

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3 years ago
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