Presented below is information related to Sage Inc. Cost RetailInventory, 12/31/20 $245,700 $384,400Purchases 818,428 1,450,600Purchase returns 61,000 79,700Purchase discounts 18,100 —Gross sales revenue — 1,411,200Sales returns — 97,900Markups — 118,900Markup cancellations — 40,400Markdowns — 44,800Markdown cancellations — 20,100Freight-in 41,900 —Employee discounts granted — 8,100Loss from breakage (normal) — 4,600Assuming that Sage Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2021.

The cost-to-retail ratio is a financial ratio that is used in retail accounting to measure the…

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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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Presented below is information related to Sage Inc.

	Cost	Retail
Inventory, 12/31/20	$245,700	$384,400
Purchases	818,428	1,450,600
Purchase returns	61,000	79,700
Purchase discounts	18,100	—
Gross sales revenue	—	1,411,200
Sales returns	—	97,900
Markups	—	118,900
Markup cancellations	—	40,400
Markdowns	—	44,800
Markdown cancellations	—	20,100
Freight-in	41,900	—
Employee discounts granted	—	8,100
Loss from breakage (normal)	—	4,600

Assuming that Sage Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2021.

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