### Inventory and Cost-to-Retail Analysis**Inventory, October 1, 2021:**- **At cost:** $30,000- **At retail:** $40,000**Purchases (exclusive of freight and returns):**- **At cost:** $113,510- **At retail:** $156,500**Freight-in:** $6,100**Purchase Returns:**- **At cost:** $3,100- **At retail:** $3,800**Additional Markups:** $3,500**Markup Cancellations:** $200**Markdowns (net):** $900**Normal Spoilage and Breakage:** $5,500**Sales:** $149,000**Sales Returns:** $3,270---#### Required:1. **Objective:** Using the conventional retail method, prepare a schedule to compute the estimated lower of cost or market (LCM) inventory for October 31, 2021. *(Round your cost-to-retail percentage to 2 decimal places and round your final answers to the nearest whole dollar.)*### Schedule:| Cost | Retail | Cost-to-Retail Ratio ||------|--------|-----------------------|| **Beginning Inventory** | $30,000 | $40,000 || **Add: Purchases** | $113,510 | $156,500 || **Add: Freight-in** | $6,100 | || **Less: Purchase Returns** | $3,100 | $3,800 || | | || **Add: Net Markups** | | $3,300 || | | || **Goods Available for Sale (excluding net markdowns)** | $146,510 | $196,000 || **Cost-to-retail percentage** | | **74.75%** || **Less: Net Markdowns** | | $900 || | | || **Goods Available for Sale (including net markdowns)** | | $195,100 || **Less: Normal Spoilage** | | $5,500 || **Less: Sales** | | $149,000 || **Less: Sales Returns** | | $3,270 || | | || **Estimated Ending Inventory at Retail** | | $145,730 || **Estimated Ending Inventory at Cost** | | |**Graphs/Diagrams**:-

Inventory, October 1, 2021: At cost At retail Purchases (exclusive of freight and returns): At cost At retail Freight-in Purchase returns: At cost At retail Additional markups Markup cancellations Markdowns (net) Normal spoilage and breakage Sales Sales returns Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Add: Net markups Goods available for sale (excluding net markdowns) Cost-to-retail percentage Less: Net markdowns Goods available for sale (including net markdowns) Less: Normal spoilage Less: Sales Less: Sales returns Required: 1. Using the conventional retail method, prepare a schedule computing estimated lower of cost or market (LCM) inventory for October 31, 2021. (Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and round your final answers to the nearest whole dollar.) Estimated ending inventory at retail Estimated ending inventory at cost 15.5 S $ Cost 30,000 40,000 113,510 156,500 6,100 146,510 3,100 3,800 3,500 200 900 5,500 149,000 3,270 30,000 $ 113,510 6,100 3,100 $ Retail 40,000 156,500 3,800 3,300 196,000 900 195,100 5,500 $ 149,000 3,270 145,730 Cost-to-Retail Ratio 74.75%

Inventory, October 1, 2021: At cost At retail Purchases (exclusive of freight and returns): At cost At retail Freight-in Purchase returns: At cost At retail Additional markups Markup cancellations Markdowns (net) Normal spoilage and breakage Sales Sales returns Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Add: Net markups Goods available for sale (excluding net markdowns) Cost-to-retail percentage Less: Net markdowns Goods available for sale (including net markdowns) Less: Normal spoilage Less: Sales Less: Sales returns Required: 1. Using the conventional retail method, prepare a schedule computing estimated lower of cost or market (LCM) inventory for October 31, 2021. (Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and round your final answers to the nearest whole dollar.) Estimated ending inventory at retail Estimated ending inventory at cost 15.5 S $ Cost 30,000 40,000 113,510 156,500 6,100 146,510 3,100 3,800 3,500 200 900 5,500 149,000 3,270 30,000 $ 113,510 6,100 3,100 $ Retail 40,000 156,500 3,800 3,300 196,000 900 195,100 5,500 $ 149,000 3,270 145,730 Cost-to-Retail Ratio 74.75%

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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After looking at the attachment, if ABC uses the average retail method, how much would the estimated ending inventory be?
The inventory of Wildhorse Company on December 31, 2025, consists of the following items. Part 110 111 112 113 120 121 a 122 Quantity 660 1,040 540 210 410 1,700 280 Show Transcribed Text Cost per Unit Net Realizable Value Show Transcribed Text Sales revenue Markdowns $128.00 Sales returns Inventory as of December 31, 2025 81.00 108.00 Markups Markup cancellations 229.50 277.00 Freight on purchases 22.00 324.00 aPart No. 121 is obsolete and has a realizable value of $1.00 each as scrap. (a) Determine the inventory as of December 31, 2025, by the LCNRV method, applying this method to each item. Inventory as of December 31, 2025 $ Markdown cancellations $ (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory. The records of Oriole's Boutique report the following data for the month of April. $100,800 1,800 10,300 $135.00 1,500 8,700 70.00 2,700 103.00 243.00 2,100 281.00 1.00 317.00 Purchases (at cost) Purchases (at sales price) Purchase…
Problem 1 of 2 (note additional problem below): Calculate the cost of goods sold dollar value and the value of ending inventory for En Cee Yo0 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIF0); and (c) weighted average (AVG). You must show your work and calculations--answers that are correct but do not show calculations are graded as a zero grade. Place your answers in the shaded cells. Number of Units Unit Cost 110 $ Beginning inventory, March 1 Purchased inventory, March 8 86 140 $ 90 Sold inventory for $110 per unit, March 11 95 If you use the FIFO method, the dollar value of COGS is → and the dollar value of ending inventory is- If you use the LIFO method, the dollar value of COGS is - and the dollar value of ending inventory is- If you use the Weighted Average method, the dollar value of…
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Presented below is information related to Novak Inc. Inventory, 12/31/25 Purchases Purchase returns Purchase discounts Gross sales revenue Sales returns Markups Markup cancellations Markdowns Markdown cancellations Freight-in Employee discounts granted Loss from breakage (normal) Show Transcribed Text S Cost $253,500 $390,700 1,009,210 1,468,300 59,300 18,100 41,300 C Retail Ending inventory using the conventional retail inventory method $ 79,500 1,434,100 99,100 118,600 39,600 44,200 20,400 8,000 4,700 Assuming that Novak Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2026.
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es Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage ormal spoilage Sales Sales returns Cost $ 97,000 363,000 9,700 7,700 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 5,546 Retail $ 187,000 587,000 11,700 16,700 12,700 3,700 8,700 547,000 10,700 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,700. 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Conventional application
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