Presented below is information related to sweet company


Assignment

Presented below is information related to sweet company.

                                           Cost                Retail

Beginning Inventory              $62,850           $95,900

Purchase (net)                      115,340           185,900

Net markups                                               11,355

Net markdowns                                           25,970

Sales Revenue                                             195,710

Compute the ending inventory at retail.

Compute a cost to retail percentage under the following conditions.

                                                                         Cost to retail percentage

(1) Excluding both markups and markdowns ________________________________%

(2) Excluding markups but including markdowns  _________________________%

(3) Excluding markdowns but including markups _________________________%

(4)Including both markdowns and markups_______________________________%

Which of the methods in (b) above does the following

1. Provides the most conservation estimate of ending inventory._____________________

2. Provides an approximation of lower-of-cost-or-market._____________________________

3. Is used in the conventional retail method__________________________________

Compute ending inventory at lower-of-cost-or market

Compute cost of goods sold based on.

Compute gross margin based on.

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