AC 550 Project 2 - (3,000) Net Markups _________ 17,000...

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AC 550 Project 2 Amber L. Wolridge Part 1 Gross Profit Method A) .25___ = 33 1/3% Gross profit of sales 1.00-.25 B) .25 = 20% Gross profit of cost 1.00 + .25 Part 2 Retail Inventory Method Cost Retail Beginning Inventory $60,000 $ 93,000 Purchases 96,000 176,000 Purchase returns (4,000) (6,000) Freight on purchases 2,000 __________ Totals $154,000 263,000 Add: Net Markups Markups $20,000 Markup cancellations
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Unformatted text preview: (3,000) Net Markups _________ 17,000 Totals $154,000 280,000 Deduct: Net markdowns Markdowns 18,600 Markdowns cancellations (5,600) Net markdowns 13,000 Sales price of goods available 267,000 Deduct: Net sales ($204,000-$4000) 200,000 Ending inventory- retail $ 67,000 Cost-to-retail ratio = 154,000 = 58.55% or 59% 263,000 Ending inventory at cost = 59% * $67,000= $39,530...
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This note was uploaded on 05/23/2011 for the course ACCOUTNING 550 taught by Professor Abner during the Spring '11 term at DeVry Houston.

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AC 550 Project 2 - (3,000) Net Markups _________ 17,000...

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