A Department Store Wants to Estimate the Cost of Ending

question 114

Essay

A department store wants to estimate the cost of ending inventory using the conventional retail method. Round ratios to four decimal places. For example, 0.43677 equals 0.4368. The following data is available:
$$\begin{array} { | l | r | } \hline \text { Sales } & \$ 90,000 \\\hline \text { Sales Returns } & \$ 1,000 \\\hline \text { Markups } & \$ 10,000 \\\hline \text { Markdowns } & \$ 9,000 \\\hline \text { Purchases (at cost) } & \$ 20,000 \\\hline \text { Purchases (at retail) } & \$ 50,000 \\\hline \text { Purchase returns (at cost) } & \$ 1,200 \\\hline \text { Purchase returns (at retail) } & \$ 2,000 \\\hline \text { Beginning inventory (at cost) } & \$ 30,000 \\\hline \text { Beginning inventory (at retail) } & \$ 46,000 \\\hline\end{array}$$
Required:
Using the conventional retail method, estimate the cost of ending inventory.

Understand the principles of effective health education strategies.

Identify techniques for engaging clients in the learning process.

Recognize the importance of positive reinforcement in health education.

Understand the role of summarization and review in reinforcing learning.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, providing a more useful tool for performance evaluation compared to a static budget.

Cost Behavior

The study of how specific costs change in relation to changes in the levels of activity within a company, typically categorized into fixed, variable, and mixed costs.

Sales Variance

The difference between actual sales and budgeted or forecasted sales.