ry on Feb. 1 $280,000 $435,000 Net sales
- A gift store reported the following records for its operation during the month of February.
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@Cost |
@Retail |
|
Inventory on Feb. 1 |
$280,000 |
$435,000 |
|
Net sales |
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$440,000 |
|
Markdowns |
|
$88,000 |
|
Returns to vendors |
$15,000 |
$20,000 |
|
Employee discounts |
|
$15,000 |
|
Purchases |
$320,000 |
$498,000 |
A. What was the book value of the closing inventory at retail in February?
B. What was the cumulative markup% of total merchandise handled in February?
(Hint: Cumulative MU% is the MU% for Total Merchandise Handled (TMH), and
TMH = Opening inventory + Purchases – RTV)
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Cost |
Retail |
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C. What was the book inventory at cost on February 28 when the store closed?
D. The physical inventory at retail taken after closing the store on February 28 amounted to $368,000. Did this store experience a shortage or an overage or neither?
E. What was the shortage% / overage%?
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