Presented below is information related to Fusion Company. Retail Beginning inventory Purchases Cost $ 500 20,000 Markups Markup cancellations Markdowns Markdown cancellations $1,000 35,000 3,000 1,000 2,500 2,000 Sales 37,500 Required: a. Compute a Cost-to-retail ratio after net markups but before net markd b. Compute the inventory by the conventional retail inventory method.
Presented below is information related to Fusion Company. Retail Beginning inventory Purchases Cost $ 500 20,000 Markups Markup cancellations Markdowns Markdown cancellations $1,000 35,000 3,000 1,000 2,500 2,000 Sales 37,500 Required: a. Compute a Cost-to-retail ratio after net markups but before net markd b. Compute the inventory by the conventional retail inventory method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer required a,b
Transcribed Image Text:Presented below is information related to Fusion Company.
Cost
Retail
$ 500
Beginning inventory
Purchases
$1,000
35,000
3,000
1,000
2,500
2,000
20,000
Markups
Markup cancellations
Markdowns
Markdown cancellations
Sales
37,500
Required:
a. Compute a Cost-to-retail ratio after net markups but before net markdowns.
b. Compute the inventory by the conventional retail inventory method.
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