**Title: Calculating Ending Inventory Using the Conventional Retail Method****Background:**Kingbird Beachwear Inc. had the following inventory details:- **Beginning Inventory:** - Cost: $38,400 - Retail: $46,080- **Net Purchases:** - Cost: $201,600 - Retail: $234,240- **Adjustments:** - Net Markups: $5,760 - Net Markdowns: $17,280- **Sales Revenue:** $220,800**Task:**Compute the ending inventory at cost using the conventional retail method. **Instructions:**- Round ratios for computational purposes to 0 decimal places (e.g., 78%).- Round the final answer to 0 decimal places (e.g., 5,275).**Calculation:**Ending inventory using the conventional retail method: $ [Enter Calculation]**Explanation:**To calculate the ending inventory using the conventional retail method, first compute the cost-to-retail percentage. Then, adjust for all markups and markdowns to determine the final ending inventory value.

The ending inventory can be calculated using various methods such as conventional retail methods.…

Kingbird Beachwear Inc. had beginning inventory of $38,400 at cost and $46,080 at retail. Net purchases were $201,600 at cost and $234,240 at retail. Net markups were $5,760, net markdowns were $17,280, and sales revenue was $220,800. Compute ending inventory at cost using the conventional retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to O decimal places, e.g. 5,275.) Ending inventory using the conventional retail method 2$

Kingbird Beachwear Inc. had beginning inventory of $38,400 at cost and $46,080 at retail. Net purchases were $201,600 at cost and $234,240 at retail. Net markups were $5,760, net markdowns were $17,280, and sales revenue was $220,800. Compute ending inventory at cost using the conventional retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to O decimal places, e.g. 5,275.) Ending inventory using the conventional retail method 2$

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section20.3: Estimating Inventory

Problem 1OYO

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Question

**Title: Calculating Ending Inventory Using the Conventional Retail Method**

**Background:**

Kingbird Beachwear Inc. had the following inventory details:

- **Beginning Inventory:**
- Cost: $38,400
- Retail: $46,080

- **Net Purchases:**
- Cost: $201,600
- Retail: $234,240

- **Adjustments:**
- Net Markups: $5,760
- Net Markdowns: $17,280

- **Sales Revenue:** $220,800

**Task:**

Compute the ending inventory at cost using the conventional retail method.

**Instructions:**

- Round ratios for computational purposes to 0 decimal places (e.g., 78%).
- Round the final answer to 0 decimal places (e.g., 5,275).

**Calculation:**

Ending inventory using the conventional retail method: $ [Enter Calculation]

**Explanation:**

To calculate the ending inventory using the conventional retail method, first compute the cost-to-retail percentage. Then, adjust for all markups and markdowns to determine the final ending inventory value.

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