SMCC Retail Corp had the following info: Beg inventory @ cost = $400,000, @ retail =$790,000 Net Purchases @ cost = $1,475,000, @ retail = $2,350,000 In addition, Mark-ups were $95,000 and Mark-up cancellations were $5,000. Mark-downs were $50,000 and Mark-down cancellations were $10,00 Net Sales were $2,250,000. REQUIRED: Compute Ending Inventory value usir the retail inventory method

SMCC Retail Corp had the following info: Beg inventory @ cost = $400,000, @ retail =$790,000 Net Purchases @ cost = $1,475,000, @ retail = $2,350,000 In addition, Mark-ups were $95,000 and Mark-up cancellations were $5,000. Mark-downs were $50,000 and Mark-down cancellations were $10,00 Net Sales were $2,250,000. REQUIRED: Compute Ending Inventory value usir the retail inventory method

Name: SMCC Retail Corp had the following info:Beg inventory @ cost = $400,0
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: SMCC Retail Corp had the following info:Beg inventory @ cost = $400,000, @ retail=$790,000Net Purchases @ cost = $1,475,000, @ retail =$2,350,000In addition, Mark-ups were $95,000 and Mark-upcancellations were $5,000. Mark-downs were$50,000 and Mark

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A firm has beginning inventory of 150 units at a cost of $10 each. Production during the period was…

A: FIFO: FIFO stands for First-In, First-Out. As its name suggest, this method assumes that the oldest…

Q: If sales are $250,000, merchandise purchases are $126,500, and the balance of the merchandise…

A: Cost of goods sold is the actual cost of goods that is being sold to the customers. It is calculated…

Q: Com plc bought 500 items of inventory at the price of $20 per item on 1 January 20X2, and another…

A: The objective of the question is to calculate the profit under replacement cost accounting. The…

Q: ABC Company had net sales of $500,000 and cost of goods sold of $300,000. The company's average…

A: Inventory turnover ratio is a financial metric used to assess the efficiency and effectiveness of a…

Q: Mac's Hardware's gross profit on sales is 40%. At the beginning of January, the cost of inventory…

Q: Vaughn Company's inventory records show the following data: Units Unit Cost Inventory, January 1…

A: Meaning of LIFO Last in, first out (LIFO) is a method used to account for inventory that records…

Q: Wanda's Widgets uses the periodic inventory system. Its beginning inventory was $15,000, the ending…

A: Lets understand the basics.Cost of goods sold is a total cost of producing or acquiring the products…

Q: A wholesale company prices its inventory at $132,704. If the original price of the items was…

A: Lets understand the basics.Management do mark up and mark down to detemine sale prices. For…

Q: Triple J Company has a current ratio of 3.1. The acid test ratio is 2.4. The current liabilities of…

A: Current ratio :— It is calculated by dividing current assets by current liabilities. Current ratio…

Q: Sandork, Inc., has 200 units of inventory which are currently priced at $4.90 per unit at the…

A: Step 1:To determine the correct entry for Sandork, Inc., we need to compare the original cost of the…

Q: Blue Company has the following data for the year: $140,000 Beginning inventory Net sales revenue…

A: Cost of goods sold is the actual cost of goods that are being sold to the customers. This is…

Q: if a compan ships goods at mark up 30% to its local branch which has 45,500 begining inventory, for…

A: Combined statements for overvaluation mentioned here mean the various adjustments that have been…

Q: Aster Limited has a current ratio of 1.75 to 1 and current liabilities of $20,000. If Aster…

A: Financial Ratio: A financial ratio, also known as an accounting ratio, is the ratio of the size of…

Q: Novak Limited uses a perpetual inventory system. The inventory records show the following data for…

A: Under the weighted average model, the cost of the goods that are available for sale divided by the…

Q: The following data is for Atlantis Merchandising, which uses a periodic inventory system: Sales…

A: The cost of goods available for sale includes beginning inventory, net purchases, and freight…

Q: At the end of January, Higgins Data Systems had an inventory of 750 units, which cost $13 per unit…

A: Solution:Cost of goods sold refers to the cost of the units which are sold.

Q: Can you explain how do we get COGS and Inventory? Exe Ltd sold supplies to Whi Ltd with a total…

A: Lets understand the basics. When inter company sales of good happened between two entity of group…

Q: Lindsey Corporation had the following account balances: Sales revenue $200,000 Beginning inventory…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: The dress shirt department began this season with an opening inventory of $380,000 at retail…

A: Cumulative Mark up Percentage Cumulative mark up which is calculated as Total retail cost of…

Q: Mario's Home Systems has sales of $2,860, costs of goods sold of $2,200, inventory of $512, and…

A: Sales = $2,860 COGS = $2,200 Inventory = $510 Accounts receivable = $434

Q: The 200X records of Thompson Company showed beginning inventory of $6,000, cost of goods sold of…

A: Accounting: Accounting is the art of recording, classifying and summarizing in a significant…

Q: the perpetual inventory system. At the beginning of the quarter, Monte Vista has $48,000 in…

A: Answer : Cost of good sold = Inventory in the beginning + Inventory purchased - Inventory return -…

Q: Todrick Company is a merchandiser that reported the following information based on 1,000 units…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Llleo, inc purchases 2,100S of inventory with shipping terms FOB Vancouver.The supplier is based in…

A: To determine the cost of Illeo's inventory, we need to consider the purchase price of the inventory…

Q: Classic Vehicles had a beginning inventory of $156,700 and an ending inventory of $98,500. If the…

A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…

Q: CHERRY Company has 10,000 units of merchandise with unit cost of ₱50 at the beginning of the year.…

A: Ending inventory cost at year-end using FIFO is the cost of the units that remain unsold after all…

Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

SMCC Retail Corp had the following info:
Beg inventory @ cost = $400,000, @ retail
=$790,000
Net Purchases @ cost = $1,475,000, @ retail =
$2,350,000
In addition, Mark-ups were $95,000 and Mark-up
cancellations were $5,000. Mark-downs were
$50,000 and Mark-down cancellations were $10,000
Net Sales were $2,250,000.
REQUIRED: Compute Ending Inventory value usin
the retail inventory method

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 The definition and workings

VIEW

Step 2 Computation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

SMCC Retail Corp had the following info: Beg inventory @ cost = $400,000, @ retail =$790,000 Net Purchases @ cost = $1,475,000, @ retail = $2,350,000 In addition, Mark-ups were $95,000 and Mark-up cancellations were $5,000. Mark-downs were $50,000 and Mark-down cancellations were $10,000. Net Sales were $2,250,000. REQUIRED: Compute Ending Inventory value using the retail inventory method
The following information is available for the past year for a retail store: Sales $121,000 Sales Returns $1,000 Markups $11,000 Markup cancellations $1,000 Markdowns $9,000 Purchases (at cost) $40,000 Purchases (at retail) $90,000 Beginning inventory (at cost) $30,000 Beginning inventory (at retail) $40,000 What is the cost-to-retail ratio to estimate the cost of ending inventory using the conventional retail method? (Round cost-to-retail ratios to four decimal places.) Group of answer choices 53.85% 75% 58.33% 50%
JC Manufacturing purchased inventory for $4,400 and also paid a $320 freight bill. JC Manufacturing returned 45% of the goods to the seller and later took a 1% purchase discount. Assume JC Manufacturing uses a perpetual inventory system. What is JC Manufacturing's final cost of the inventory that it kept? (Round your answer to the nearest whole number.) OA. $1,960 OB. $2,716 OC. $2,570 OD. $2,396
Bijoux Company has sales of $40,000, beginning inventory of $5,000, purchases of $25,000, and ending inventory of $7,000. The cost of goods sold is: A) $23,000 B) $30,000 C) $40,000 D) $17,000
The home office ships merchandise to its branch at 20% above cost. The balance before closing in the Intra-company Inventory profit account is P132,000 and Shipments from Home Office amounted to P600,000.The cost of the branch beginning inventory is 60,000 128,000 160,000 192,000
Tefft Industires has an average inventory of $170,000, sells on term of 2/10, net 30, and its cost of sales is $540,000. What is Tefft's inventory conversion period? *show work* A) 85 days B) 115 days C) 105 days D) cannot be determined from the data given
Lux had net purchases of $50,000, ending inventory of $25,000, net sales of $100,000, and gross profit of $32,000. How much was Lux's beginning inventory? O $7,000 O $43,000 O $93,000 O $143,000
balances for a merchandising company are listed below. (The company uses the inventory method.) 1. Selected account periodic Sales Revenue $ 90,000 Sales Returns and Allowances 4,000 Purchases 60,000 Inventory (beginning) ??? Inventory (ending) 13,000 Purchase Returns and Allowances 2,000 Transportation - in 3,000 Transportation-out 1,000 Sales Discounts 6,000 Purchase Discounts Gross Profit 5,000 21,000 Determine the company's beginning inventory. A. $15,000 B. $16,000 C. $18,000 D. $19,000 E. $22,000
Martha Inc. had 20,000 units of ending inventory that were recorded at the cost of five dollars per unit using the FIFO method. The current replacement cost is $4.25 per unit which of the following amounts would be reported as ending merchandise inventory in the balance sheet, using the lower of cost or market rule. A) $85,000 B) $100,000 C) $120,000 D) $185,000
Lady Gaga Company provided the following data for the current year: Inventory, January 1 - P2,000,000 Purchases P7,500,000 Purchase returns and allowances - P500,000 Sales returns and allowances - P750,000 Inventory, December 31 - P2,800,000 Gross profit rate based on sales - 20% What is the cost of goods sold? A P7,200,000 B P6,200,000 P9,000,000 P6,700,000