# accounting

posted by .

Neer Department Store uses the retail inventory method to estimate its monthly ending inventories. The following information is available for two of its departments at August 31, 2011.
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.

## Respond to this Question

 First Name School Subject Your Answer

## Similar Questions

1. ### Math

Please help thanks :) I need to know how to figure out this question. Below is some financial information for the month of September for a large clothing store Using the retail method of inventory, estimate the value of the ending …
2. ### Finanacial accounting

I am having touble how to work with the retail inventory method to estimate the companies year end inventory. i have the following information but i just do not see it with even the example in the book. It is in a 5x3 matrix of colimns …
3. ### Accounting

Year end inventory at cost \$55,902, at retail 84,700. Questions: A year-end physical inventory at retail prices yields a total inventory of \$78,550. Prepare a calculation showing the company's loss from shrinkage at cost and at retail.
4. ### Math

Determine the cost ratio (Retail Method) for Twilight Games and Comix Store if the cost of goods available for sale is \$36,000 and the retail value of goods available for sale is \$90,000. (Express your answer to the nearest one-thousandth).
5. ### math

a party suppilies store recored net sales of \$423,400 for the year. the store's begining inventory at retail was \$105,850 and its ending inventory inventory at retail was \$127,020.what would be the inventory turnover at retail,rounded …
6. ### Business Math

Estimate the cost of ending inventory for August for Roman's Jewelry Store using the retail method on the following data: Cost Retail Beginning inventory for August \$180,000 \$288,000 Purchases during August \$70,000 \$112,000 Net sales …
7. ### Math

Joe Ponzio, a financial advisor who bases his investigating strategies on the teachings of Warren Buffett, explains why inventory turnover rates matter to managers, owners, and investors on his August 7, 2009, blog post, He states: …
8. ### business math

Baker Company purchases a new delivery truck for \$20,000. The truck is expected to have a useful life of 90,000 miles before replacement, and a salvage value of \$2,000. In its first year the truck was driven 22,000 miles, and a further …
9. ### business math

Estimate the cost of ending inventory for August for Roman's Jewelry Store using the retail method on the following data: Cost Retail Beginning inventory for August \$180,000 \$288,000 Purchases during August \$70,000 \$112,000 Net sales …
10. ### Math/Accounts

Estimate the cost of ending inventory based on the retail method using the following information: Cost Retail Beginning Inventory \$ 600,000 \$ 800,000 Purchases \$ 450,000 \$ 600,000 Net Sales \$1,000,000 A. \$150,000 B. \$262,500 C. \$300,000 …

More Similar Questions