When you undertook the preparation of the financial statements for Cullumber Company at January 31, 2026, the following data were available: Inventory, February 1, 2025 Markdowns, net Markups, net Normal spoilage Abnormal spoilage Purchases Sales revenue Purchases returns and allowances Sales returns and allowances Estimated future returns related to January 2026 sales At Cost Ending inventory at lower-of-cost-or-market $84,600 13.279 184.400 3,600 At Retail $99,600 12,600 44,400 8,400 10.100 247,000 281,400 4,600 8,400 3,400 Compute the ending inventory at cost as of January 31, 2026, using the retail method which approximates lower-of-cost-or-market. (Round cost to retail ratio to 2 decimal places, e.gs. 15.25% and final answer to O decimal places, e.g. 5,125.)
When you undertook the preparation of the financial statements for Cullumber Company at January 31, 2026, the following data were available: Inventory, February 1, 2025 Markdowns, net Markups, net Normal spoilage Abnormal spoilage Purchases Sales revenue Purchases returns and allowances Sales returns and allowances Estimated future returns related to January 2026 sales At Cost Ending inventory at lower-of-cost-or-market $84,600 13.279 184.400 3,600 At Retail $99,600 12,600 44,400 8,400 10.100 247,000 281,400 4,600 8,400 3,400 Compute the ending inventory at cost as of January 31, 2026, using the retail method which approximates lower-of-cost-or-market. (Round cost to retail ratio to 2 decimal places, e.gs. 15.25% and final answer to O decimal places, e.g. 5,125.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:When you undertook the preparation of the financial statements for Cullumber Company at January 31, 2026, the following data were
available:
Inventory, February 1,2025
Markdowns, net
Markups, net
Normal spoilage
Abnormal spoilage
Purchases
Sales revenue
Purchases returns and allowances
Sales returns and allowances
Estimated future returns related to January 2026 sales
Ending inventory at lower-of-cost-or-market
At Cost
$
$84.600
13.279
184,400
3,600
At Retail
$99,600
12,600
44,400
8,400
10.100
247,000
281,400
4,600
8,400
Compute the ending inventory at cost as of January 31, 2026, using the retail method which approximates lower-of-cost-or-market.
(Round cost to retail ratio to 2 decimal places, eg. 15.25% and final answer to O decimal places, e.g. 5,125.)
3,400
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