4 Perry Corporation uses the retail method to value its inventory. The following information is ava 5 6 7 8 9 0 1 2 3 4 Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $300,000 343,460 Retail $417,000 500,400 6,000 10,400 8,300 644,000 5 Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided 6 7 Compute the cost-to-retail percentage under the conventional retail method 8 Cost Retail 19 20 21 22 23. Goods available for sale Estimated ending inventory Estimated cost of goods sold

4 Perry Corporation uses the retail method to value its inventory. The following information is ava 5 6 7 8 9 0 1 2 3 4 Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $300,000 343,460 Retail $417,000 500,400 6,000 10,400 8,300 644,000 5 Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided 6 7 Compute the cost-to-retail percentage under the conventional retail method 8 Cost Retail 19 20 21 22 23. Goods available for sale Estimated ending inventory Estimated cost of goods sold

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 13E: Retail Inventory Method The following information relates to the retail inventory method used by...

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Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
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Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
Perpetual versus Periodic Inventory Systems Graham Company is trying to select an inventory system. Below are several statements that pertain to inventory systems. 1. Cost of goods sold is only determined at the end of the period after a physical count of inventory. 2. A physical count of inventory is performed. 3. Purchases of inventory are recorded in a purchases account. 4. Cost of goods sold is determined continually during the period as sales are made. 5. Greater control over inventory is possible. 6. This inventory system is relatively inexpensive to operate. Required: Select the inventory system, perpetual or periodic, that is best represented by each statement. If the statement applies to both systems, select both.
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Use the first-in, first-out method (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
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