A Department Store's Accounts Showed the Following at the End

question 63

Essay

A department store's accounts showed the following at the end of the period: $\begin{array} { | l | l | l | } \hline & \text { At Cost } & \text { At Retail } \\\hline \text { Beginning inventory } & \$ 120 & \$ 160 \\\hline \text { Purchases } & 240 & 340 \\\hline \text { Sales } & 430 & ( 500 ) \\\hline \text { Markdowns } & 60 & \\\hline \text { Markdown cancellations } & 10 & \\\hline \text { Additional mark-ups } & 120 & \\\hline \text { Additional mark-up cancellations } & 20 & \\\hline\end{array}$
Using the above data, apply the retail inventory method to compute the approximate average cost (LCM) for the ending inventory. $___________________.

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Definitions:

Average Total Cost

The total cost of production divided by the total quantity produced, representing the average cost per unit of output.

Implicit Costs

The opportunity costs of using resources owned by the business for its operations, not directly paid out in cash.

Delivery Truck

A vehicle specifically designed for transporting goods from one location to another.

Income

The amount of money received over a period of time either as payment for work, goods, or services, or through investments.