Larkspur Beachwear Inc. had beginning inventory of $30,400 at cost and $36,480 at retail. Net purchases were $159,600 at cost and$185,440 at retail. Net markups were $4,560, net markdowns were $13,680, and sales revenue was $174,800.Compute ending inventory at cost using the conventional retail method. (Round ratios for computational purposes to O decimal places, e.g.78% and final answer to O decimal places, e.g. 5,275.)Ending inventory using the conventional retail method$

Solution: Conventional Retail Method Cost Retail Cost to Retail ratio Beginning Inventory…

Larkspur Beachwear Inc. had beginning inventory of $30,400 at cost and $36,480 at retail. Net purchases were $159,600 at cost and $185,440 at retail. Net markups were $4,560, net markdowns were $13,680, and sales revenue was $174,800.

Larkspur Beachwear Inc. had beginning inventory of $30,400 at cost and $36,480 at retail. Net purchases were $159,600 at cost and $185,440 at retail. Net markups were $4,560, net markdowns were $13,680, and sales revenue was $174,800.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4PEA: Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory...

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