Presented below is information related to Oriole C ompany Cost Retail Beginning

Question

Presented below is information related to Oriole C ompany Cost Retail Beginning inventory Purchases (net) Net markups Net markdowns Sales revenue $ 53,760 $107,700 119,400 204,800 9,605 26,513 175,600 ? (a) Your answer is correct. Compute the ending inventory at retail. Ending inventory Click if you would like to Show Work for this question: 119992 Open Show Work HoW SOLUTION SHOW ANSWER Attempts: 1 of 2 used ? (b) Compute a c st-to retail percentage (1) Excluding both markups and markdowns (2) Excluding markups but including markdowns (3) Excluding markdowns but including markups. (4) Including both markdowns and markups. Click if you would like to Show Work for this question: Qpen Show Work

Explanation / Answer

SOLUTION

(A)

(B)

1. Excluding both markups and markdowns-

Cost to retail percentage = 173,160 / (107,700 + 204,800)

= 173,160 / 312,500 = 55.41%

2. Excluding markups but including markdowns-

Cost to retail percentage = 173,160 / (107,700 + 204,800 - 26,513)

= 173,160 / 285,987 = 60.55%

3. Excluding markdowns but including markups-

Cost to retail percentage = 173,160 / 322,105

= 53.76%

4. Including both markdowns and markups -

Cost to retail percentage = 173,160 / 295,592

= 58.59%

Cost ($) Retail ($) Beginning inventory 53,760 107,700 Purchases 119,400 204,800 Net markups 9,605 Totals 173,160 322,105 Net markdowns (26,513) Sales price of goods available 295,592 Deduct: Sales revenue (175,600) Ending inventory at retail 119,992

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---