The Following Information Is Available for the Month of June

question 35

Essay

The following information is available for the month of June for a retail store:
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 79,000 \\\hline \text { Sales Returns } & \$ 1,000 \\\hline \text { Markups } & \$ 10,000 \\\hline \text { Markup cancellations } & \$ 1,000 \\\hline \text { Markdowns } & \$ 9,300 \\\hline \text { Purchases (at cost) } & \$ 40,000 \\\hline \text { Purchases (at retail) } & \$107,000 \\\hline \text { Purchase returns (at cost) } & \$1,200 \\\hline \text { Purchase returns (at retail) } & \$ 2,000 \\\hline \text { Beginning inventory (at cost) } & \$ 30,000\\\hline\text { Beginning inventory (at retail) }&\$46,000\\\hline\end{array}$
Required:
Calculate the ending inventory at cost using the basic retail method. Round ratios to four decimal places. (For example, 0.40127 = 0.4013)

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Definitions:

Functionalism

A theory in psychology that considers mental states and processes to be characterized by their function in the mental system, rather than by their internal constitution.

Information Processing Approach

A psychological framework that considers how humans process, store, and retrieve information, analogous to computer operations.

Human Mind

The collective aspects of intellect, consciousness, and emotions that constitute the mental capabilities of a person.

Computer

An electronic device capable of processing, storing, and retrieving data, executing a wide range of tasks according to instructions.