Harley Co. uses the conventrional retail method to estimate ending inventories. The following data has been summarized for year ended December 31, 2015 Cost Retail Inventory , January 1 $ 208,000 $ 280,000 Purchases $ 470,000 $ 610,000 Net Markups $ 15,300 Net Markdowns $ 11,200 Normal Spoilage $ 4,600 Net Sales $ 489,500 Estimate the cost of ending inventory applying the conventional retail method. Assume that sales are recorded net of employee discounts Prepare a schedule to compute Harley's December 31, 2015 inventory under the conventioanl retail method
Harley Co. uses the conventrional retail method to estimate ending inventories. The following data has been summarized for year ended December 31, 2015 Cost Retail Inventory , January 1 $ 208,000 $ 280,000 Purchases $ 470,000 $ 610,000 Net Markups $ 15,300 Net Markdowns $ 11,200 Normal Spoilage $ 4,600 Net Sales $ 489,500 Estimate the cost of ending inventory applying the conventional retail method. Assume that sales are recorded net of employee discounts Prepare a schedule to compute Harley's December 31, 2015 inventory under the conventioanl retail method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
| Harley Co. uses the conventrional retail method to estimate ending inventories. The following data has been summarized for year ended December 31, 2015 | |||||||
| Cost | Retail | ||||||
| Inventory , January 1 | $ 208,000 | $ 280,000 | |||||
| Purchases | $ 470,000 | $ 610,000 | |||||
| Net Markups | $ 15,300 | ||||||
| Net Markdowns | $ 11,200 | ||||||
| Normal Spoilage | $ 4,600 | ||||||
| Net Sales | $ 489,500 | ||||||
| Estimate the cost of ending inventory applying the conventional retail method. Assume that sales are recorded net of employee discounts | |||||||
| Prepare a schedule to compute Harley's December 31, 2015 inventory under the conventioanl retail method |
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