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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 Purchases $260,000 544,420 10,800 $350,000 910,000 Freight-in Net markups 34,000 18,000 870,000 Net markdowns Net sales

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 Purchases $260,000 544,420 10,800 $350,000 910,000 Freight-in Net markups 34,000 18,000 870,000 Net markdowns Net sales

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 9-14 (Algo) Conventional retail method [LO9-3] 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 $260,000 544,420 10,800 $350,000 910,000 Purchases Freight-in Net markups Net markdowns 34,000 18,000 870,000 Net sales Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Answer is complete but not entirely correct. Cost-to- Retail Ratio Cost Retail Beginning inventory $ 260,000 24 350,000 Purchases 544,420 910,000 Freight-in 10,800 34,000 Net markups 1,294,000 (18,000) Net markdowns 815,220 1,276,000 Goods available for sale 64.00 % Cost-to-retail percentage
Transcribed Image Text:Exercise 9-14 (Algo) Conventional retail method [LO9-3] 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 $260,000 544,420 10,800 $350,000 910,000 Purchases Freight-in Net markups Net markdowns 34,000 18,000 870,000 Net sales Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Answer is complete but not entirely correct. Cost-to- Retail Ratio Cost Retail Beginning inventory $ 260,000 24 350,000 Purchases 544,420 910,000 Freight-in 10,800 34,000 Net markups 1,294,000 (18,000) Net markdowns 815,220 1,276,000 Goods available for sale 64.00 % Cost-to-retail percentage
Freight-in Net markups Net markdowns Net sales 10,800 34,000 18,000 870,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) X Answer is complete but not entirely correct. Cost-to- Cost Retail Retail Ratio Beginning inventory 2$ 260,000 $ 350,000 Purchases 544,420 910,000 Freight-in 10,800 Net markups 34,000 1,294,000 Net markdowns (18,000) Goods available for sale 815,220 1,276,000 Cost-to-retail percentage 64.00 X % Net sales (870,000) Estimated ending inventory at retail 406,000 Estimated ending inventory at cost (739,500) X
Transcribed Image Text:Freight-in Net markups Net markdowns Net sales 10,800 34,000 18,000 870,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) X Answer is complete but not entirely correct. Cost-to- Cost Retail Retail Ratio Beginning inventory 2$ 260,000 $ 350,000 Purchases 544,420 910,000 Freight-in 10,800 Net markups 34,000 1,294,000 Net markdowns (18,000) Goods available for sale 815,220 1,276,000 Cost-to-retail percentage 64.00 X % Net sales (870,000) Estimated ending inventory at retail 406,000 Estimated ending inventory at cost (739,500) X
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