Problem 99 Presented below is information related to Shamroc

Problem 9-9 Presented below is information related to Shamrock 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) $251,300 962,468 58,800 18,000 $387,300 1,455,600 78,800 1,421,800 98,300 117,600 40,500 45,700 20,200 41,400 7,900 4,500 Assuming that Shamrock Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2018. (Round ratios for computational purposes to 0 decimal places, e.g 7896 and final answer to 0 decimal places, eg. 28,987.) Ending inventory using the conventional retail inventory method Click if you would like to Show Work for this question: Open Show Work

Solution

Cost to retail ratio 1,178,368/1,828,800 64%

ending inventory at cost 307,072 (479800*64/100)

		Cost		Retail
Beginning inventory		$251,300		$387,300
Purchases	962,468		1,455,600
less returns	58,800		78,800
discounts	18,000	885,668	0	1,376,800
Freight		41,400
less employees discount granted				7,900
loss from breakage				4,500
		1,178,368		1,751,700
Add net marks up				117,600
marks cancellations				(40,500)
				77,100
total		1178368		1,828,800
Deduct Net mark down			45700
Markdown cancellation			(20,200)	25,500
Sale price of goods available				1,803,300
Sales less returns (1,421,800-98,300)				1,323,500
ending inventory				479,800