The
records for the Clothing Department of Sharapova’s Discount Store are
summarized below for the month of January.
P9-6 (Retail Inventory Method) The records for the Clothing Department of Sharapova’s Discount Store are summarized below for the month of January.
|
Inventory, January 1,
|
at retail:
|
$25,000
|
at cost:
|
$17,000
|
|
Purchases in January,
|
at retail:
|
137,000
|
at cost:
|
82,500
|
|
Freight-in,
|
7,000
|
|
||
|
Purchases returns,
|
at retail:
|
3,000
|
at cost:
|
2,300
|
|
Transfers in from suburban branch,
|
at retail:
|
13,000
|
at cost:
|
9,200
|
|
Net markups:
|
8,000
|
|
||
|
Net markdowns:
|
4,000
|
|
||
|
Inventory losses due to normal breakage, etc, at
retail:
|
at retail:
|
400
|
|
|
|
Sales
|
at retail:
|
95,000
|
|
|
|
Sales returns:
|
2,400
|
|
||
Instructions
(a) Compute
the inventory for this department as of January 31, at Retail(b) Compute the inventory using lower of average cost or market.
TUTORIAL PREVIEW
(a) Compute the inventory for this department as of January 31, at Retail
|
Cost
|
Retail
|
||
|
Beginning Inventory
|
$17,000
|
$25,000
|
|
|
Purchases
|
82,500
|
137,000
|
|
|
Freight-in
|
7,000
|
