Concept explainers
1.
The ending inventory at cost with the use of retail inventory method.
Given info,
The beginning inventory at cost is $469,010.
The beginning inventory at retail is $928,950.
The cost of goods purchased at cost is $3,376,050.
The cost of goods purchased at retail is $6,381,050.
Sales amount to $5,595,800.
Sales returns amount to $42,800.
2.
Company’s loss from shrinkage at cost and at retail.
Given info,
Physical inventory at retail is $1,686,900.
Inventory shortage:
Particulars | At cost ($) | At retail ($) | ||
Estimated inventory (part 1) | 924,182 | 1,757,000 | ||
Less: physical inventory | 887,309 | 1,686,900 | ||
Inventory shortage | 36,873 | 70,100 | ||
Table (2) |
Table (2)
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Chapter 5 Solutions
NOVA CC - ACC 211: Connect for Financial and Managerial Accounting with PROCTORIO PLUS
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
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