Jake Thomas Corporation uses the conventional retail method for financial reporting. The company's inventory records are summarized below. Description Cost Retail Beginning inventory $31,800 $53,000 Purchases 127,540 197,900 Additional markups 9,600 Markup cancellations 3,500 Markdowns 5,100 Markdown cancellations 4,000 Sales 230,000 Complete the partial table below to determine the cost-to-retail ratio. In the following step, complete the table by selecting the labels and entering the amounts needed to estimate Jake Thomas' ending inventory using the conventional retail method. (If an input field is not used in the table, leave the input field empty; do not enter a zero. Round the cost-to-retail ratio to two decimal places, X.XX%. Round all currency amounts to the nearest whole dollar.)
Jake Thomas Corporation uses the conventional retail method for financial reporting. The company's inventory records are summarized below. Description Cost Retail Beginning inventory $31,800 $53,000 Purchases 127,540 197,900 Additional markups 9,600 Markup cancellations 3,500 Markdowns 5,100 Markdown cancellations 4,000 Sales 230,000 Complete the partial table below to determine the cost-to-retail ratio. In the following step, complete the table by selecting the labels and entering the amounts needed to estimate Jake Thomas' ending inventory using the conventional retail method. (If an input field is not used in the table, leave the input field empty; do not enter a zero. Round the cost-to-retail ratio to two decimal places, X.XX%. Round all currency amounts to the nearest whole dollar.)
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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Jake Thomas Corporation uses the conventional retail method for financial reporting. The company's inventory records are summarized below.
Description
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Cost
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Retail
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Beginning inventory
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$31,800
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$53,000
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Purchases
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127,540
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197,900
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Additional markups
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9,600
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|
Markup cancellations
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3,500
|
|
Markdowns
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5,100
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|
Markdown cancellations
|
4,000
|
|
Sales
|
230,000
|
Complete the partial table below to determine the cost-to-retail ratio. In the following step, complete the table by selecting the labels and entering the amounts needed to estimate Jake Thomas' ending inventory using the conventional retail method. (If an input field is not used in the table, leave the input field empty; do not enter a zero. Round the cost-to-retail ratio to two decimal places, X.XX%. Round all currency amounts to the nearest whole dollar.)
Cost-to-Retail
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Description
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Cost
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Retail
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Ratio
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Subtotal
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Cost-to-retail ratio
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%
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Goods available for sale
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Less:
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Ending inventory at retail
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Ending inventory at LCM
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