|
|
|
 Topic: Cost Retail Inventory Method ( Topic Closed)
|
 
|
| Author |
|
ay435
Newbie
Joined: 01 Jul 2010
Online Status: Offline
Posts: 14
|
| Posted: 01 Jul 2010 at 16:03 | IP Logged
|
|
|
I think the follow is wrong from 2009 becker's chapter 4 supplement hw readings pg 69, shouldn't mark downs be excluded from the calculation of the cost to retail ratio like on page 66? Any thoughts ?
Cost Retail Inventory Method
Under the cost retail inventory method, the markdowns go above the "total available for
sale" line. Therefore, the result must be adjusted to "lower of cost or market."
At Cost At Retail
Beginning inventory $ 25,000 $ 39,000
Purchases 35,000 60,000
Markups -- 1,000
Markdowns -- (2,000)
Total available for sale $ 60,000 ÷ $ 98,000 = 61.22% cost complement
Sales -- (88,000)
Ending inventory at retail $ 10,000
Ending inventory at cost
($10,000 x 61.22%) $ 6,122
|
| Back to Top |
|
| |
1tryCPA
Major Contributor
Joined: 27 Jun 2010
Online Status: Offline
Posts: 337
|
| Posted: 01 Jul 2010 at 20:05 | IP Logged
|
|
|
It's a conventional or lower of cost or market method. Under this method markdowns are included in calculation of the ratio. If the problem says that it's not adjusted to lower of cost or market, then, don't include the markdowns.
__________________
FAR - 07/09/10 - {95}
AUD - 10/02/10 - {96}
BEC - 11/29/10 - {92}
REG - 05/23/11 - {75 would be enough}90 unbelievable, and I AM DONE!!!
______________
Wiley book/Gleim CD/Gleim simulations
|
| Back to Top |
|
| |
ay435
Newbie
Joined: 01 Jul 2010
Online Status: Offline
Posts: 14
|
| Posted: 02 Jul 2010 at 00:00 | IP Logged
|
|
|
any other thoughts?
|
| Back to Top |
|
| |
|
|
Sorry, you can NOT post a reply.
This topic is closed.
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum
|
 Copyright ©2001-2010 Web Wiz Guide
This page was generated in 0.0938 seconds.
|
Active Topics 
Memberlist 
Search 
Help
Register 
Login
