Question

Concord Inc. had beginning inventory of $11,900 at cost and $21,000 at retail. Net purchases were $140,679 at cost and $183,000 at retail. Net markups were $10,900, net markdowns were $7,500, and sales revenue was $132,700. Compute ending inventory at cost using the conventional retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)

Answer 1

See

Step-by-step explanation:

Retail inventory - Conventional method

Cost Retail

Beginning inventory 11,900 21,000

Purchases 140,679 183,000

Add: Mark up --- 10,900

Current year addition 140,679 193,900

Goods available for sale 152,579 214,900

Less: Mark down ----- 7,500

Sales ----- 132,700

Ending inventory retail ----- 74,700

Ratio of goods available for sale (152,579/214,900) 71%

Ending inventory 53,037