Question

# Presented below is information related to Bonita Company. Cost Retail Beginning inventory \$252,960 \$281,000 Purchases 1,368,000...

Presented below is information related to Bonita Company.

 Cost Retail Beginning inventory \$252,960 \$281,000 Purchases 1,368,000 2,097,000 Markups 93,700 Markup cancellations 15,700 Markdowns 36,900 Markdown cancellations 4,900 Sales revenue 2,243,000

Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)

Ending inventory using conventional retail inventory method \$__________

 Cost price Retail price Beginning inventory \$252,960 \$281,000 Purchases \$1,368,000 \$2,097,000 Net markups \$78,000 (\$93,700-\$15,700) Totals \$1,620,960 \$2,456,000

Cost to retail ratio = \$1,620,960 / \$2,456,000

= 0.66

 Retai price total \$2,456,000 Net markdowns (\$32,000) (\$36,900-\$4,900) Total goods at retail \$2,424,000 Sales (\$2,243,000) Ending inventory at retail \$181,000

Ending inventory at cost = \$181,000 * 0.66 = \$119,460

Ending inventory using conventional retail inventory method \$119,460

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