Question

9. A retailer has a beginning monthly inventory valued at

$80,000 at retail and $52,500 at cost. Net purchases during

the month are $190,000 at retail and $115,000 at cost.

Transportation charges are $10,500. Sales are $225,000.

Markdowns and discounts equal $30,000. A physical

inventory at the end of the month shows merchandise valued

at $15,000 (at retail) on hand. Compute the following:

a. Total merchandise available for sale:at cost and at

retail.

b. Cost complement

c. Ending retail book value of inventory.

d. Stock shortages.

e. Adjusted ending retail book value.

f. Gross profit.

(Give the proper answer with explanation)

Answer 1