Billingsly Products Uses the Conventional Retail Method to Estimate Its

question 109

Essay

Billingsly Products uses the conventional retail method to estimate its ending inventories. The following data has been summarized for the year 2009:
Required:
Estimate the ending inventory as of December 31, 2009.
$$\begin{array} { l c r } & \text { Cost } & \text { Retail } \\\text { Inventory, January 1 } & \$ 53,000 & \$ 78,000 \\\text { Purchases } & 322,360 & 466,000 \\\text { Net markups } & & 8,000 \\\text { Net markdowns } & & 16,700 \\\text { Net sales } & & 392,000\end{array}$$

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Definitions:

Phase Angle

A measurement, often in degrees or radians, indicating the difference in phase between two waveforms.

Parallel Circuit

An electrical circuit configuration where components are connected alongside each other, leading to the same voltage across all components but different current through each.

Inductive Reactance

The opposition that inductors present to current change in AC circuits, measured in Ohms.

Power Factor

A dimensionless number between -1 and 1 that represents the phase difference between the voltage and current in an alternating current (AC) electrical circuit.