Presented below is information related to Waveland Inc. Assuming that Waveland I

Question

Presented below is information related to Waveland Inc.

Assuming that Waveland Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2015.

Cost Retail Inventory, 12/31/14 $275,100 $401,000 Purchases 1,029,465 1,485,000 Purchase returns 62,170 81,500 Purchase discounts 20,050 -- Gross Sale revenue -- 1,417,200 Sales Return -- 97,700 markups -- 123,900 markup cancellations -- 40,900 markdown -- 48,100 markdown cancellations -- 28,300 freight-in 42280 -- employee discounts granted -- 8600 loss from breakage (normal) -- 5600

Explanation / Answer

Particulars Cost Retail

Inventory 275100 401000

Net purchases 947245 1403500

freight in 42280

Inventory available for sale 1264625 1804500

ADD: Markups 123900

Markups cancellation (40900) 83000

Totals 1887500

DEDUCT: Mark downs 48100

Mark downs cancellations (28300) 19800   

Totals 1867700

DEDUCT : Net sales 1319500

Normal loss 56000

Ending inventory at retail 542600.

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