Chapter 1 Problem 8-32
Cost Retail
Beginning inventory 168,000 400,000
Purchases 2,806,000 3,100,000
Freight in 42,000
Markup 300,000
Markup cancellation _______ ( 30,000)
Goods available for sale – conservative 3,016,000 3,770,000
Cost ratio (3,016/3,770) 80%
Markdown ( 150,000)
Markdown cancellation _________ 40,000
Goods available for sale – average 3,016,000 3,660,000
Less: Sales 3,000,000
Shrinkage (4% x 3,000,000) 120,000 3,120,000
Ending inventory 540,000
Conservative cost (540,000 x 80%) 432,000
Physical inventory (500,000 x 80%) 400,000
Shortage 32,000
Inventory, December 31 400,000
Inventory shortage 32,000
Income summary 432,000
No comments:
Post a Comment