Estimating Inventory Using Retail Inventory Method-Conventional Outlet Store applies the conventional retail inventory method. Information relating to the computation of inventory for 2020 follows. Estimated normal spoilage is 2% of sales. At Cost At Retail $24,000 $48,000 360,000 354,000 Beginning inventory Sales Purchases Freight-in Markups Markup cancellations. Markdowns Markdown cancellations 180,000 4,800 Ending inventory $ 0 36,000 12,000 15,000 3,000 Calculate estimated ending inventory for 2020 using the conventional retail method. • Do not round the cost ratio in your calculations. • Round your final answer below to the nearest dollar.
Estimating Inventory Using Retail Inventory Method-Conventional Outlet Store applies the conventional retail inventory method. Information relating to the computation of inventory for 2020 follows. Estimated normal spoilage is 2% of sales. At Cost At Retail $24,000 $48,000 360,000 354,000 Beginning inventory Sales Purchases Freight-in Markups Markup cancellations. Markdowns Markdown cancellations 180,000 4,800 Ending inventory $ 0 36,000 12,000 15,000 3,000 Calculate estimated ending inventory for 2020 using the conventional retail method. • Do not round the cost ratio in your calculations. • Round your final answer below to the nearest dollar.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 10E: Discounts Nelson Company bought inventory for 50,000 on terms of 2/15, n/60. It pays for the first...
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Transcribed Image Text:Estimating Inventory Using Retail Inventory Method-Conventional
Outlet Store applies the conventional retail inventory method. Information relating to the computation of inventory for 2020 follows. Estimated normal spoilage is 2% of sales.
At Cost At Retail
$24,000 $48,000
360,000
180,000 354,000
4,800
Beginning inventory
Sales
Purchases
Freight-in
Markups
Markup cancellations
Markdowns
Markdown cancellations
36,000
12,000
15,000
3,000
Calculate estimated ending inventory for 2020 using the conventional retail method.
• Do not round the cost ratio in your calculations.
Round your final answer below to the nearest dollar.
Ending inventory $ 0
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