The records of Hamilton Apparel display the following data for the month of October: Sales $72,500 Purchase (at cost) $35,000 Sales returns $1,500 Purchase (at retail) $65.800 Markups $6,500 Purchase return (at cost) $1,500 Markup cancellations $900 Purchase return (at retail) $2,100 Markdowns $5,200 Beginning inventory (at cost) $20,500 Markdown cancellations $1,200 Beginning inventory (at retail) $30,700 Freight on purchase $2,200 Required: a. Estimate the ending inventory using the retail inventory method. Round the cost ratio to two decimal places based on % (e.g, 36.76%). [Please note it is NOT conventional retail method]. W b. Estimate the ending inventory using the conventional retail inventory method. Round the cost ratio to two decimal places based on % (e.g, 36.76%).
The records of Hamilton Apparel display the following data for the month of October: Sales $72,500 Purchase (at cost) $35,000 Sales returns $1,500 Purchase (at retail) $65.800 Markups $6,500 Purchase return (at cost) $1,500 Markup cancellations $900 Purchase return (at retail) $2,100 Markdowns $5,200 Beginning inventory (at cost) $20,500 Markdown cancellations $1,200 Beginning inventory (at retail) $30,700 Freight on purchase $2,200 Required: a. Estimate the ending inventory using the retail inventory method. Round the cost ratio to two decimal places based on % (e.g, 36.76%). [Please note it is NOT conventional retail method]. W b. Estimate the ending inventory using the conventional retail inventory method. Round the cost ratio to two decimal places based on % (e.g, 36.76%).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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![The records of Hamilton Apparel display the following data for the month of October:
Sales
$72,500
Purchase (at cost)
$35,000
Sales returns
$1,500
Purchase (at retail)
$65.800
Markups
$6,500
Purchase return (at cost)
$1,500
Markup cancellations
$900
Purchase return (at retail)
$2,100
Markdowns
$5,200
Beginning inventory (at cost)
$20,500
Markdown cancellations
$1,200
Beginning inventory (at retail) $30,700
Freight on purchase
$2,200
Required:
a. Estimate the ending inventory using the retail inventory method. Round the cost ratio
to two decimal places based on % (e.g, 36.76%). [Please note it is NOT conventional
retail method].
W
b. Estimate the ending inventory using the conventional retail inventory method. Round
the cost ratio to two decimal places based on % (e.g, 36.76%).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F590c8aba-ca99-4a86-b955-f85bf7c236b5%2F51326134-a873-4c88-85de-16dbe4f2d4a8%2F461o396_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The records of Hamilton Apparel display the following data for the month of October:
Sales
$72,500
Purchase (at cost)
$35,000
Sales returns
$1,500
Purchase (at retail)
$65.800
Markups
$6,500
Purchase return (at cost)
$1,500
Markup cancellations
$900
Purchase return (at retail)
$2,100
Markdowns
$5,200
Beginning inventory (at cost)
$20,500
Markdown cancellations
$1,200
Beginning inventory (at retail) $30,700
Freight on purchase
$2,200
Required:
a. Estimate the ending inventory using the retail inventory method. Round the cost ratio
to two decimal places based on % (e.g, 36.76%). [Please note it is NOT conventional
retail method].
W
b. Estimate the ending inventory using the conventional retail inventory method. Round
the cost ratio to two decimal places based on % (e.g, 36.76%).
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