Friday

January 30, 2015

January 30, 2015

Posted by **Sara** on Tuesday, March 29, 2011 at 8:39am.

Sporting Goods Jewelry and Cosmetics

Cost Retail Cost Retail

Net sales $1,000,000 $1,160,000

Purchases $675,000 1,066,000 $741,000 1,158,000

Purchase returns (26,000) (40,000) (12,000) (20,000)

Purchase discounts (12,360) — (2,440) —

Freight-in 9,000 — 14,000 —

Beginning inventory 47,360 74,000 39,440 62,000

At December 31, Neer Department Store takes a physical inventory at retail. The actual retail values of the inventories in each department are Sporting Goods $95,000, and Jewelry and Cosmetics $44,000.

Determine the estimated cost of the ending inventory for each department on August 31, 2011, using the retail inventory method. (Round ratio computations to 0 decimal places eg 54% and answers to 0 decimal places, e.g. 125.)

Compute the ending inventory at cost for each department at December 31, assuming the cost-to-retail ratios are 60% for Sporting Goods and 64% for Jewelry and Cosmetics.

**Answer this Question**

**Related Questions**

Business Math - Estimate the cost of ending inventory for August for Roman's ...

business math - Estimate the cost of ending inventory for August for Roman's ...

COLLEGE ACCOUNTING - Sunset Company uses the periodic inventory method and had ...

accounting - using the following information, calculate inventory turnover ratio...

Math - Please help thanks :) I need to know how to figure out this question. ...

business math - Baker Company purchases a new delivery truck for $20,000. The ...

math - a party suppilies store recored net sales of $423,400 for the year. the ...

Finanacial accounting - I am having touble how to work with the retail inventory...

Math/Accounts - Estimate the cost of ending inventory based on the retail method...

Math - Joe Ponzio, a financial advisor who bases his investigating strategies on...