Question

Cloverdale, Inc., uses the conventional retail inventory method to account for inventory. The following information relates...

Cloverdale, Inc., uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations:

Cost Retail Beginning inventory and purchases $ 324,000 $ 566,000 Net markups 34,000 Net markdowns 24,000 Net sales 488,000

What amount should be reported as cost of goods sold for the year?

Multiple Choice

  • $273,625.

  • $274,500.

  • None of these answer choices are correct.

  • $276,480.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: Option $276,480

Explanation:

Particulars Cost Retail
Begnning Inventory plus Purchases $324000 $566000
Net Markups $34000
$600000
Less: Markdowns -$24000
Goods Available for Sale $324000 $576000
Less: Net Sales -$488000
Estimated Ending Inventory at Retail $88000
Less: Estimated Ending Inventory at Cost ($88,000*54%) -$47520
Estimated Cost of Goods sold $276480
Cost to Retail percentage $324000 = 54%
$600000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the...
Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:     Cost Retail   Beginning inventory $48,000 $63,000   Net purchases 153,000 215,000   Net markups 22,000   Net markdowns 35,000   Net sales 221,000     To the nearest thousand, estimated ending inventory using the conventional retail method is (Do not round intermediate calculations):     Multiple Choice $37,000. $29,000. $31,000. $35,000.
Campbell Corporation uses the retail method to value its inventory. The following information is available for...
Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2018: Cost Retail Merchandise inventory, January 1, 2018 $ 250,000 $ 286,000 Purchases 672,000 888,000 Freight-in 14,000 Net markups 26,000 Net markdowns 4,500 Net sales 860,000 Required: Determine the December 31, 2018, inventory by applying the conventional retail method. Cost Retail Cost-to-Retail Ratio Beginning inventory Plus: Purchases Freight-in Net markups Less: Net markdowns Goods available for sale Cost-to-retail percentage Less: Net sales...
Valuing Inventory Using Conventional Retail Method Dean Company uses the conventional retail method to estimate its...
Valuing Inventory Using Conventional Retail Method Dean Company uses the conventional retail method to estimate its inventory for interim statement disclosures. Data relating to the computation of the inventory at July 31, 2020, follow. Compute estimated inventory on July 31, 2020, using the conventional retail method. Cost Retail Beginning inventory, February 1, 2020 $108,000  $150,000 Purchases 612,000 945,000 Markups, net 105,000 Sales 1,035,000 Markdowns, net 75,000 Ending Inventory at cost $_______ please show work!!!!
Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the...
Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:     Cost Retail Beginning inventory $ 50,000 $ 67,000 Net purchases 158,000 223,000 Net markups 26,000 Net markdowns 39,000 Net sales 224,000     The conventional cost-to-retail percentage (rounded) is:
.A company using the conventional retail method has the following information for the current year's operations:...
.A company using the conventional retail method has the following information for the current year's operations: Cost Retail Beginning inventory $ 100,000 $ 150,000 Purchases 500,000 800,000 Net markups 85,000 Net markdowns 35,000 Net sales 750,000 Management calculates the cost-to-retail percentage as 60%, equal to cost of $600,000 ($100,000 + $500,000) divided by retail of $1,000,000 ($150,000 + $800,000 + $85,000 – $35,000). Which of the following statements is correct? A) The cost-to-retail percentage should be calculated as cost of...
Almaden General Store uses a periodic inventory system and the retail inventory method to estimate ending...
Almaden General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of November 2021: ​ Cost Retail Beginning inventory $48,000 $63,000 Net purchases 10,170 32,900 Net markups ​ 2,500 Net markdowns ​ 1,450 Net sales ​ 45,000Cost of cost of goods sold for November using conventional retail inventory method would be: ​ Cost Retail Beginning inventory $48,000 $63,000 Net purchases 10,170...
Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business...
Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business January 1, 2018, and uses the LIFO retail method to estimate ending inventory.     Cost Retail Beginning inventory $ 76,000 $ 114,000 Net purchases 355,000 520,000 Net markups 30,000 Net markdowns 50,000 Net sales 465,000       Estimated ending inventory at retail is: Multiple Choice $35,000. $85,000. $149,000. $197,280. Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the...
San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate...
San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of October 2021: Cost Retail Beginning inventory $ 37,000 $ 52,000 Net purchases 17,795 31,800 Net markups 1,400 Net markdowns 900 Net sales 34,000
Crane Pet supply uses the conventional retail method to determine its ending inventory at cost. Assume...
Crane Pet supply uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $795800 ($979700), purchases during the current year at cost (retail) were $3185800 ($4138300), freight-in on these purchases totaled $190700, sales during the current year totaled $4036000, and net markups (markdowns) were $5900 ($287900). What is the ending inventory value at cost?
Melvin Corporation uses the CONVENTIONAL RETAIL METHOD for Financial Reporting. The company’s inventory record are summarized...
Melvin Corporation uses the CONVENTIONAL RETAIL METHOD for Financial Reporting. The company’s inventory record are summarized as follows: Description                                        Cost                             Retail Beginning Inventory                         $700,000                    $1,015,000 Purchases                                          $1,320,000                 $1,857,500 Additional Markups                                                              $72,000 Markup Cancellations                                                           $12,000 Markdowns                                                                            $18,500 Markdown Cancellations                                                      $3,000 Sales                                                                                       $2,740,500 Required: Estimates Melvin’s Ending Inventory using the Conventional Retail Method (Round percentages to two decimal places)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT