AC 302 CHAPTER 9 PROBLEM QUESTION 6

AC 302 CHAPTER 9 PROBLEM QUESTION 6
Name				Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
P9-6 (Retail Inventory Method) The records for the Clothing Department of Sharapova- Discount Store are summarized below for the month of January.						
						
Inventory, January 1,			at retail:	$25,000 	at cost:	$17,000 
Purchases in January,			at retail:	137,000 	at cost:	82,500 
Freight-in,				7,000 		
Purchases returns,			at retail:	3,000 	at cost:	2,300 
Transfers in from suburban branch,			at retail:	13,000 	at cost:	9,200 
Net markups:				8,000 		
Net markdowns:				4,000 		
Inventory losses due to normal breakage, etc, at retail:			at retail:	400 		
Sales			at retail:	95,000 		
Sales returns:				2,400 		
						
Instructions:						
(a) Compute the inventory for this department as of January 31, at Retail						
						
				Cost		Retail
	Beginning Inventory			Amount		Amount
	Title			Amount		Amount
	Title			Amount		
	Title			Amount		Amount
	Transfers in from suburban branch			Amount		Amount
				Formula		Formula
	Net markups					Amount
						Formula
	Net markdowns					Amount
	Title				Amount	
	Title				Amount	
	Title					Formula
	Title					Amount
	Ending inventory at retail					Formula
						
		Cost-to-retail ratio =		Value	=	Formula
				Value		
						
(b) Compute the inventory for this department as of January 31, at lower of average cost or market.						
						
Ending inventory at lower of average cost or market 				Value	Percentage	Formula
						
						
Note: Due to significant digits of worksheets and calculators, small differences may occur.