Suppose Holt Renfrew, the specialty retailer, had these records for ladies' evening gowns during 2017. Beginning inventory (50@ $1,000) $30,000 • Purchase in February (26 @ $1,100) 27,500 Purchase in June (75 @ $1,200) Purchase in December (40 @ $1,300) 32,500 72,000 • Goods available $162,000 Assume sales of evening gowns totalled 156 units during 2017 and that Holt uses the weighted- average-cost method under the periodic inventory system to account for inventory. The income tax rate is 30%.

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Chapter1: Financial Statements And Business Decisions
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Compute Hotts' Cost of Goods sold for evening gowns in 2017 and also compute what cost of goods sold would have been if Holt had purchased enough inventory in December-at $1,300 per evening gown-to keep year-end inventory at the same level it was at the begining of the year ,50 units.

Suppose Holt Renfrew, the specialty retailer, had these records for ladies' evening gowns
during 2017.
• Beginning inventory (50 @ $1,000) $ 30,000
Purchase in February (26 @ $1,100) 27,500
Purchase in June (75 @ $1,200)
Purchase in December (40 @ $1,300) 32,500
72,000
• Goods available
$162,000
Assume sales of evening gowns totalled 156 units during 2017 and that Holt uses the weighted-
average-cost method under the periodic inventory system to account for inventory. The income
tax rate is 30%.
Transcribed Image Text:Suppose Holt Renfrew, the specialty retailer, had these records for ladies' evening gowns during 2017. • Beginning inventory (50 @ $1,000) $ 30,000 Purchase in February (26 @ $1,100) 27,500 Purchase in June (75 @ $1,200) Purchase in December (40 @ $1,300) 32,500 72,000 • Goods available $162,000 Assume sales of evening gowns totalled 156 units during 2017 and that Holt uses the weighted- average-cost method under the periodic inventory system to account for inventory. The income tax rate is 30%.
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