During 2020, Harmony Co. sold $520,000 of merchandise at marked retall prices. At the end of 2020, the following Information was available from its records: At Cost At Retail Beginning inventory Net purchases $127, 6ee $256, 8ee 393, 600 231, 240 Assume that in addition to estimating its ending inventory by the retall method, Harmony Co. also took a physical Inventory at the marked selling prices of the Inventory items at the end of 2020. Assume further that the total of this physical inventory at marked selling prices was $109,200. a. Determine the amount of this Inventory at cost. (Round your Intermediate calculetions and final answer to 2 decimal places.) Inventory at cost b. Determine Harmony's 2020 Inventory shrinkage from breakage, theft, or other causes at retal and at cost. (Round your intermediate calculations and final answers to 2 decimal places.) At Cost At Retail Estimated inventory that should have been on hand Physical inventory Inventory shrinkage
During 2020, Harmony Co. sold $520,000 of merchandise at marked retall prices. At the end of 2020, the following Information was available from its records: At Cost At Retail Beginning inventory Net purchases $127, 6ee $256, 8ee 393, 600 231, 240 Assume that in addition to estimating its ending inventory by the retall method, Harmony Co. also took a physical Inventory at the marked selling prices of the Inventory items at the end of 2020. Assume further that the total of this physical inventory at marked selling prices was $109,200. a. Determine the amount of this Inventory at cost. (Round your Intermediate calculetions and final answer to 2 decimal places.) Inventory at cost b. Determine Harmony's 2020 Inventory shrinkage from breakage, theft, or other causes at retal and at cost. (Round your intermediate calculations and final answers to 2 decimal places.) At Cost At Retail Estimated inventory that should have been on hand Physical inventory Inventory shrinkage
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:During 2020, Harmony Co. sold $520,000 of merchandise at marked retail prices. At the end of 2020, the following Information was
avallable from Its records:
At Cost
At Retail
$256, 800
Beginning inventory
Net purchases
$127,600
231, 240
393,600
Assume that in addition to estimating Its ending inventory by the retall method, Harmony Co. also took a physical inventory at the
marked selling prices of the Inventory Items at the end of 2020. Assume further that the total of this physical Inventory at marked
selling prices was $109,200.
a. Determine the amount of this Inventory at cost. (Round your intermedlate calculations and final answer to 2 decimal places.)
Inventory at cost
b. Determine Harmony's 2020 Inventory shrinkage from breakage, theft, or other causes at retall and at cost. (Round
your intermedlete calculatlons and final answers to 2 decimal places.)
At Cost
At Retail
Estimated inventory that should have been on hand
Physical inventory
Inventory shrinkage
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