Uncle Butch's Hunting Supply Shop reports the following information related to inventory: Beginning inventory Purchases Net additional markups Net markdowns Goods available for sale Sales Ending inventory at retail RE8-7 Cost $ 35,000 75,000 $110,000 Ending inventory at retail = Ending inventory at FIFO cost: Cost-to-retail ratio (for purchases): Retail $ 92,000 200,000 Calculate Uncle Butch's' ending inventory using the retail inventory method under the FIFO cost flow assump- tion. Round the cost-to-retail ratio to 3 decimal places. 15,000 (22,000) $285,000 (178,000) $ 107,000
Uncle Butch's Hunting Supply Shop reports the following information related to inventory: Beginning inventory Purchases Net additional markups Net markdowns Goods available for sale Sales Ending inventory at retail RE8-7 Cost $ 35,000 75,000 $110,000 Ending inventory at retail = Ending inventory at FIFO cost: Cost-to-retail ratio (for purchases): Retail $ 92,000 200,000 Calculate Uncle Butch's' ending inventory using the retail inventory method under the FIFO cost flow assump- tion. Round the cost-to-retail ratio to 3 decimal places. 15,000 (22,000) $285,000 (178,000) $ 107,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 7RE: Uncle Butchs Hunting Supply Shop reports the following information related to inventory: Calculate...
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5
LRE8-7
5
Uncle Butch's Hunting Supply Shop reports the following information related to inventory:
Cost
$ 35,000
75,000
0
Beginning inventory
Purchases
Net additional markups
Net markdowns
Goods available for sale
Sales
Ending inventory at retail
Retail
$ 92,000
200,000
15,000
(22,000)
$110,000 $285,000
Calculate Uncle Butch's' ending inventory using the retail inventory method under the FIFO cost flow assump-
tion. Round the cost-to-retail ratio to 3 decimal places.
Cost-to-retail ratio (for purchases):
Ending inventory at retail =
Ending inventory at FIFO cost:
(178,000)
$ 107,000
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