Presented below is information related to Marin, Inc. Cost Retail Beginning inventory $ 527,000 $ 930,000 Purchases 2,356,000 4,154,000 Freight on purchases 100,440 Markups 217,000 Markup cancellations 173,600 Abnormal shortage 18,600 32,240 Markdowns 109,120 Markdown cancellations 14,880 Employee discounts 6,448 Sales revenue 4,433,000 Sales returns 124,000 Normal shortage 21,700 Purchase returns 27,280 50,840

Presented below is information related to Marin, Inc. Cost Retail Beginning inventory $ 527,000 $ 930,000 Purchases 2,356,000 4,154,000 Freight on purchases 100,440 Markups 217,000 Markup cancellations 173,600 Abnormal shortage 18,600 32,240 Markdowns 109,120 Markdown cancellations 14,880 Employee discounts 6,448 Sales revenue 4,433,000 Sales returns 124,000 Normal shortage 21,700 Purchase returns 27,280 50,840

Name: **Compute Ending Inventory by the Conventional Retail Inventory Metho
Uploaded: 2024-03-20T06:32:37.000Z
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Description: **Compute Ending Inventory by the Conventional Retail Inventory Method**To calculate ending inventory, use the conventional retail inventory method. **Note**: Round percentages for computational purposes to one decimal place (e.g., 0.4158 to 41.6%)

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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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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**Compute Ending Inventory by the Conventional Retail Inventory Method**

To calculate ending inventory, use the conventional retail inventory method.

**Note**: Round percentages for computational purposes to one decimal place (e.g., 0.4158 to 41.6%) and the final answer to 0 decimal places (e.g., 5,275).

**Ending Inventory**:

Enter the computed ending inventory amount in dollars in the box provided.

Presented below is information related to Marin, Inc.

| Item | Cost | Retail |
|-----------------------------|------------|------------|
| Beginning inventory | $527,000 | $930,000 |
| Purchases | 2,356,000 | 4,154,000 |
| Freight on purchases | 100,440 | |
| Markups | | 217,000 |
| Markup cancellations | | 173,600 |
| Abnormal shortage | 18,600 | 32,240 |
| Markdowns | | 109,120 |
| Markdown cancellations | | 14,880 |
| Employee discounts | | 6,448 |
| Sales revenue | | 4,433,000 |
| Sales returns | | 124,000 |
| Normal shortage | | 21,700 |
| Purchase returns | 27,280 | 50,840 |

This table provides a detailed breakdown of various financial figures for Marin, Inc., categorized by cost and retail values. It includes data on inventory, purchases, shortages, discounts, and sales figures, offering insights into both cost and retail perspectives.

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