xlschapter9

xlschapter9 - ENDING INVENTORY AT RETAIL 116,400 ENDING...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Finished Desks A B C D 2002 Catalog selling price 450 480 900 1,050 FIFO cost per inventory (12/31/02) 470 450 830 960 Est Cost to Manufacture (12/31/02) 460 440 610 1,000 Sales commissions and disposal costs 45 60 90 130 2003 catalog selling price 500 540 900 1,200 Replacement cost 460 440 610 1,000 NRV Estimated sales price 500 540 900 1,200 Less: Costs to sell (45) (60) (90) (130) 455 480 810 1,070 Less: Normal profit margin f 20% (100) (108) (180) (240) NRV less normal profit margin 355 372 630 830 Middle Value= designated mkt value 455 440 630 1,000 Cost 470 450 830 960 LCM= Ending inventory 455 440 630 960 Ma Inventory adjustment necessary (15) (10) (200) -
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Cost Retail Beginning Inventory 52,000 78,000 Purchases, net 273,000 415,000 Merchandise available for sale 325,000 493,000 Additional markups 9,000 Markup cancellations (2,000) 325,000 500,000 Conventional/ LCM method Ratio 65.0% Markdowns, net (3,600) Total before sales 325,000 496,400 Cost method Ratio 65.5% DEDUCT SALES (380,000)
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ENDING INVENTORY AT RETAIL 116,400 ENDING inventory using conventional/ LCM method 75,660 Ending inventory using cost method 76,209 Cost Retail Beginning Inventory 52,000 78,000 LIFO OPENING POOL RATIO 67% Purchases 273,000 415,000 Markups 9,000 Markup cancellations (2,000) Markdowns, net (3,600) New inventory 273,000 418,400 LIFO current layer ratio 65% Total including Beg. Inventory not necessary 496,400 Net sales (380,000) Ending inventory at retail 116,400 Ending at Retail Layers at retail Ratio Ending at LIFO Cost 116,400 October 1 78,000 67% 52,000 October 31 38,400 65% 25,055 ENDING INVENTORY 77,055 AT LIFO COST Cost Retail Beginning inventory 1,000 1,800 Purchases 30,000 60,000 Freight in 600 Purchase returns (1,500) (3,000) Markups 9,000 Abnormal shortage (1,200) (2,000) 28,900 65,800 RATIO 43.92% Markdowns (1,400) Sales, net of returns (35,100) Employee discounts (800) Normal shortage (1,300) 27,200 Ratio 43.92% Ending inventory 11,947...
View Full Document

This note was uploaded on 08/06/2008 for the course ECON 136A taught by Professor Anderson during the Winter '08 term at UCSB.

Page1 / 4

xlschapter9 - ENDING INVENTORY AT RETAIL 116,400 ENDING...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online