problem 99 Problem 99 Presented below is information related

problem 9-9

Problem 9-9 Presented below is information related to Bonita Inc. Cost Retail Inventory, 12/31/17 Purchases Purchase returns Purchase discounts Gross sales revenue Sales returns Markups Markup cancellations Markdowns Markdown cancellations Freight-in Employee discounts granted Loss from breakage (normal) $254,700 1,002,796 59,600 17,900 $397,600 1,454,100 80,100 1,423,100 95,600 119,500 40,500 44,300 20,200 41,400 8,000 4,200 Assuming that Bonita Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2018. (Round ratios for computational places, e.g 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory using the conventional retail inventory method Click if you would like to Show Work for this question: gpen shom Wotk Version 4.24.7.7 Inci All Rights Reserved. A Division of Ind 49 P

Solution

Cost Retail Begnining Inventory 254700 397600 Plus: Purchases 1002796 1454100 Less: Purchase Returns -59600 -80100 Less: Purchase discounts -17900 Plus : Freight In 41400 Totals 1221396 1771600 Add: Net markups : Markups 119500 Less: Markup Cancellations -40500 79000 Totals 1221396 1850600 Deduct Markdowns -44300 Less: Markdown Cancellations 20200 -24100 Subtotal 1826500 Employee Discounts -8000 Inventory losses -4200 Sales price of goods available for sale 1814300 Deduct Net sales: Gross Sales 1423100 Sales returns -95600 1327500 Ending Inventory at retail 486800 Cost to retail ratio (1221396/18,50,600) 0.66 Ending inventory at cost 321288 Cost method Including markups and markdowns Ending Inventory at retail 486800 Cost to retail ratio (1,221,396/1,826,500) 0.67 Ending inventory at cost 326156