Presented below is information related to Marin Company. Cost Retail Beginning inventory $103,820 $278,000 Purchases 1,402,000 2,152,000 Markups 93,600 Markup cancellations 13,900 Markdowns 34,600 Markdown cancellations 5,000 Sales revenue 2,206,000 Compute the inventory by the conventional retail inventory method.

Question

Business

Clarissa

23 November, 23:48

Presented below is information related to Marin Company. Cost Retail Beginning inventory $103,820 $278,000 Purchases 1,402,000 2,152,000 Markups 93,600 Markup cancellations 13,900 Markdowns 34,600 Markdown cancellations 5,000 Sales revenue 2,206,000 Compute the inventory by the conventional retail inventory method.

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Answers (1)

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Kasey Vazquez · Answer 1

The ending inventory for Marin comapny is $1664460

Explanation:

Solution

An Inventory is computed by using the conventional retail inventory method. which is statted belwo:

Inventory computed for Marin Company

Cost Retail

Beginning of Inventory $103,820 $278,000

Purchases 1,402,000 2,152,000

Total 1505820 243,000

Add: Net Markups

Markups 93,600

Markup cancellations - 13,900

79700

Total 1505820 2509700

Deduct: Net Markdown

Markdown 34,600

Markdown cancellation - 5,000

29,600

Sales price of goods 2480100

Sales revenue 2,206,000

The retail ending is 274,100

Thus,

The retail cost ratio is = 1505820 / 2509700 = 60%

Hence, the cost of Ending inventory becomes = 274,100 * 60%

= $1664460.