**Larkspur Beachwear Inc. Inventory Calculation**Larkspur Beachwear Inc. had a beginning inventory valued at $30,400 at cost, and $36,480 at retail. The company made net purchases amounting to $159,600 at cost, and $185,440 at retail. The net markups were $4,560, and the net markdowns were $13,680. The sales revenue for this period was $174,800.**Task:** Compute the ending inventory at cost using the conventional retail method. **Note:** Round ratios for computational purposes to 0 decimal places (e.g., 78%), and the final answer to 0 decimal places (e.g., 5,275).**Ending inventory using the conventional retail method:**$ [Input Box]

Solution: Conventional Retail Method Cost Retail Cost to Retail ratio Beginning Inventory…

Larkspur Beachwear Inc. had beginning inventory of $30,400 at cost and $36,480 at retail. Net purchases were $159,600 at cost and $185,440 at retail. Net markups were $4,560, net markdowns were $13,680, and sales revenue was $174,800.

Larkspur Beachwear Inc. had beginning inventory of $30,400 at cost and $36,480 at retail. Net purchases were $159,600 at cost and $185,440 at retail. Net markups were $4,560, net markdowns were $13,680, and sales revenue was $174,800.

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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**Larkspur Beachwear Inc. Inventory Calculation**

Larkspur Beachwear Inc. had a beginning inventory valued at $30,400 at cost, and $36,480 at retail. The company made net purchases amounting to $159,600 at cost, and $185,440 at retail. The net markups were $4,560, and the net markdowns were $13,680. The sales revenue for this period was $174,800.

**Task:** Compute the ending inventory at cost using the conventional retail method.

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

**Ending inventory using the conventional retail method:**
$ [Input Box]

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