Question

he athletic footwear department had a closing book inventory at retail of $400,000 and had achieved a 53.5% markup on total merchandise handled. Determine the closing inventory at cost.

Answer 1

the closing inventory at cost is $186,000

Step-by-step explanation:

The computation of the closing inventory at cost is shown below:

= Closing book inventory at retail × (Percentage - markup percentage)

= $400,000 × (100 - 53.5%)

= $400,000 × 46.5%

= $186,000

hence, the closing inventory at cost is $186,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered