Sporting Goods Department:

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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When you undertook the preparation of the financial statements for Sunland Company at January 31, 2026, the following data was
available:
Sporting Goods Department:
Inventory, February 1, 2025
Markdowns
Markups
Markdown cancellations
Markup cancellations
Normal shortage
Abnormal shortage
Purchases
Sales revenue
Purchases returns and allowances
Sales returns and allowances
Apparel Department:
Inventory, February 1, 2025
At Cost
$66,400
6,555
206,400
4,100
At Retail
$92,800
32,900
59,500
18,800
9,400
At Cost
9,400
11,000
276,500
314.900
$94,100
5.100
9.400
At Retail
$106.300
Transcribed Image Text:When you undertook the preparation of the financial statements for Sunland Company at January 31, 2026, the following data was available: Sporting Goods Department: Inventory, February 1, 2025 Markdowns Markups Markdown cancellations Markup cancellations Normal shortage Abnormal shortage Purchases Sales revenue Purchases returns and allowances Sales returns and allowances Apparel Department: Inventory, February 1, 2025 At Cost $66,400 6,555 206,400 4,100 At Retail $92,800 32,900 59,500 18,800 9,400 At Cost 9,400 11,000 276,500 314.900 $94,100 5.100 9.400 At Retail $106.300
Inventory, February 1, 2025
Markdowns, net
Markups, net
Normal shortage
Purchases
Transfers in from active wear department
Sales revenue
Purchases returns and allowances
Sales returns and allowances
Employee discounts
At Cost
$94,100
188,800
13,719
8,000
Ending inventory at cost as of January 31, 2021
At Retail
$106,300
23,500
40,700
9,400
$
282,000
18,800
376,000
Compute the ending inventory at cost as of January 31, 2026, using the retail method for each department which approximates lower-
of-cost-or-market. (Round cost-to-retail ratio and final answers to 2 decimal places, e.g. 15.25% or 5,275.75.)
9,800
18,500
3,900
Sporting Goods Department
$
Apparel Department
Transcribed Image Text:Inventory, February 1, 2025 Markdowns, net Markups, net Normal shortage Purchases Transfers in from active wear department Sales revenue Purchases returns and allowances Sales returns and allowances Employee discounts At Cost $94,100 188,800 13,719 8,000 Ending inventory at cost as of January 31, 2021 At Retail $106,300 23,500 40,700 9,400 $ 282,000 18,800 376,000 Compute the ending inventory at cost as of January 31, 2026, using the retail method for each department which approximates lower- of-cost-or-market. (Round cost-to-retail ratio and final answers to 2 decimal places, e.g. 15.25% or 5,275.75.) 9,800 18,500 3,900 Sporting Goods Department $ Apparel Department
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