Question

Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 $ 350,000 $ 296,000 Purchases 692,000 968,000 Freight-in 24,000 Net markups 36,000 Net markdowns 6,000 Net sales 960,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided.

Answer 1

Answer: $275,149

Step-by-step explanation:

The December 31, 2021, inventory has been solved and attached by applying the conventional retail method using the information provided.

It should be noted that the cost to retail percentage was gotten as:

= 1,066,000/1,294,000 × 100%

= 82.38%

Ending inventory at cost was gotten as:

= 82.38% × $334,000

= 0.8238 × $334,000

= $275,149.

Check the attached file for further information.