Kim's Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year.
Beginning inventory $ 30,000.00 $ 50,000.00
Purchases 145,000.00 200,000.00
Net Markups 8,500.00
Net Markdowns 10,000.00
Employee discounts 1,000.00
What is the estimated value of the ending inventory?© BrainMass Inc. brainmass.com June 18, 2018, 10:27 pm ad1c9bdddf
The attached MS Excel document shows how the retail inventory method ...
This solution is comprised of a detailed step-by-step explanation of how to calculate the estimated value of the ending inventory using the retail inventory method. These step-by-step explanations also include how to calculate the cost-to-retail ratio as well as the edning inventory at lower of cost or market. The special items relating to the retail method which included Markup, Markedowns, Freight-in and Employee discounts have also been noted.