u05a2.xlsx - e i l a k b j n d c f g h m 1 Gross profit ratio 2 Cost-to-retail percentage 3 Additional markup 4 Markdown 5 Net markup 6 Retail method

u05a2.xlsx - e i l a k b j n d c f g h m 1 Gross profit...

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e 1. Gross profit ratio i 2. Cost-to-retail percentage l 3. Additional markup a 4. Markdown k 5. Net markup b 6. Retail method, FIFO and LIFO j 7. Conventional retail method n 8. Change from LIFO d 9. Dollar-value LIFO retail c 10. Normal spoilage f 11. Requires retrospective restatement g 12. Employee discounts h 13. Net markdowns m 14. Net realizable value
1)Average Cost Method Cost Retail Beginning Inventory $90,000 $180,000 Plus: Net Purchases $355,000 $580,000 Freight-in $9,000 Less: Purchase Returns ($7,000) ($11,000) Plus: Net Markups $16,000 Less: Net Markdowns ($12,000) Abnormal Spoilage ($4,800) ($8,000) Goods available for sale $442,200 $745,000 Cost to retail percentage: 442200/745000=59.36% Less: Normal Spoilage ($3,000) Sales: Net Sales (540,000-10,000) $530,000 Employee Discount $4,000 ($534,000) Estimated ending inventory at retail

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