Sporting Goods Department:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b9cb804-023a-4f71-be0b-ec9aa4c1e205%2Fd7cc1c18-a49a-4c5d-a5fd-72c1c95e886f%2Frypd3fb_processed.jpeg&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b9cb804-023a-4f71-be0b-ec9aa4c1e205%2Fd7cc1c18-a49a-4c5d-a5fd-72c1c95e886f%2Fjmn42ti_processed.jpeg&w=3840&q=75)
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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