The Records at the End of the Period for a Department

question 91

Essay

The records at the end of the period for a department store reflected the following: $\begin{array}{|l|l|}\hline \text { Beginning inventory (retail, } \$ 26,000) & \$ 22,800 \\\hline \text { Sales } & 120,000 \\\hline \text { Sales returns } & 4,000 \\\hline \text { Purchases (retail, } \$ 152,000) & 103,800 \\\hline \text { Purchase returns (retail, } \$ 500 \text { ) } & 400 \\\hline \text { Freight-in } & 1,600 \\\hline \text { Additional mark-ups } & 3,200 \\\hline \text { Mark-up cancellations } & 700 \\\hline \text { Markdowns } & 8,000 \\\hline \text { Markdown cancellations } & 6,000 \\\hline \text { Employee discounts } & 2,000 \\\hline\end{array}$
Compute the ending inventory at approximate lower-of-cost-or-market (average) using the retail inventory method. Show all computations.

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Definitions:

Producers

Entities or individuals that create goods or provide services, playing a crucial role in the supply side of an economy.

Resource Prices

refer to the costs associated with procuring the natural, human, and capital inputs required for the production of goods and services.

Incentive

A factor, often a reward or penalty, that motivates an individual or entity to act in a certain way.

Supply Curve

A visual diagram that illustrates how the price of a product correlates with the amount of the product that sellers are prepared to sell at various price levels.