Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.16P
Conventional Retail Inventory Method, Lower of Cost or Market. The Wallace Corporation provided the following data related to its inventory at the end of the current year
| Description | Cost | Retail |
| Beginning inventory | $18,700 | $38,000 |
| Purchases | 99,400 | 142,000 |
| Additional markups | 12,000 | |
| Markup cancellations | 4,000 | |
| Markdowns | 17,800 | |
| Markdown cancellations | 7600 | |
| Sales | 158,000 |
Required
- a. What is Wallace Weed’s ending inventory and cost of goods sold under the conventional retail method? Round percentages to two decimal places
- b. What is the cost to retail ratio under the basic retail method
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Chapter 10 Solutions
Intermediate Accounting (2nd Edition)
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