Boxer inc uses the conventional retail method to

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111. Boxer Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $65,500 ($99,000), purchases during the current year at cost (retail) were $568,000 ($865,600), freight-in on these purchases totaled $26,500, sales during the current year totaled $811,000, and net markups were $69,000. What is the ending inventory value at cost? a. $222,600. b. $174,366. c. $142,241. d. $152,308.
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Inventories: Additional Valuation Issues 9 - 25 112. Barker Pet supply uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $265,600 ($326,900), purchases during the current year at cost (retail) were $1,068,600 ($1,386,100), freight-in on these purchases totaled $63,900, sales during the current year totaled $1,302,000, and net markups (markdowns) were $2,000 ($96,300). What is the ending inventory value at cost? 113. Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year: Cost Retail Beginning inventory $ 30,000 $ 50,000 Purchases 145,000 200,000 Freight-in 2,500 Net markups 8,500 Net markdowns 10,000 Employee discounts 1,000 Sales 205,000 If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost to retail ratio? Use the following information for questions 114 through 118. The following data concerning the retail inventory method are taken from the financial records of Welch Company. Cost Retail Beginning inventory $ 49,000 $ 70,000 Purchases 224,000 320,000 Freight-in 6,000 Net markups 20,000 Net markdowns 14,000 Sales 336,000 114. The ending inventory at retail should be
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9 - 26 115. If the ending inventory is to be valued at approximately the lower of cost or market, the calculation of the cost to retail ratio should be based on goods available for sale at (1) cost and (2) retail, respectively of a. $279,000 and $410,000. b. $279,000 and $396,000. c. $279,000 and $390,000. d. $273,000 and $390,000. 116. If the foregoing figures are verified and a count of the ending inventory reveals that merchandise actually on hand amounts to $54,000 at retail, the business has *117. Assuming no change in the price level if the LIFO inventory method were used in conjunction with the data, the ending inventory at cost would be a. $42,600. b. $42,000. c. $40,800. d. $43,200. *118. Assuming that the LIFO inventory method were used in conjunction with the data and that the inventory at retail had increased during the period, then the computation of retail in the cost to retail ratio would a. exclude both markups and markdowns and include beginning inventory. b. include markups and exclude both markdowns and beginning inventory. c. include both markups and markdowns and exclude beginning inventory.
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  • Spring '10
  • Brown
  • retail inventory

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