Presented below is information related to Swifty Company. Cost Retail Compute th

Question

Presented below is information related to Swifty Company.

                                                       Cost                Retail

Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)

Ending inventory using conventional retail inventory method______

The answer is not 194580 or 194326. I have already tried both

Beginning inventory $318,504 $279,000 Purchases 1,363,000 2,117,000 Markups 93,200 Markup cancellations 16,400 Markdowns 38,300 Markdown cancellations 5,500 Sales revenue 2,158,000

Explanation / Answer

*$282,000 x 68% = $191,760

Cost Retail Cost-to-Retail Ratio Beginning Inventory $318,504 $279,000 Plus: Net Purchases $1,363,000 $2,117,000 Add: Net markups Markups $93,200 Markup cancellations ($16,400) Totals $1,681,504 $2,472,800 Less: Net markdowns Markdowns $38,300 Markup cancellations ($5,500) Goods available for sale $1,681,504 $2,440,000 Cost-to-retail percentage 68% Less: Net Sales $2,158,000 Estimated ending inventory at retail $282,000 Estimated ending inventory at cost $191,760* Estimated cost of goods sold $1,489,744

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