Retail Inventory Method for Greene Company
Not what you're looking for?
Part 1 Gross Profit Method
Horton, Inc. suffered an inventory loss due to a flood. The following information is available to you.
Beginning inventory $100,000
Net purchase 400,000
Sales 400,000
Inventory salvaged from flood 50,000
Instructions
Use the gross profit method for estimating inventory to determine the loss due to the flood, assuming (a) gross profit is 25% of sales, and (b) gross profit is 25% of the cost of goods sold.
Part 2 Retail Inventory Method The records of Greene Company report the following data for the month of April.
Sales $204,000 Purchases (at cost) $ 96,000
Sales returns 4,000 Purchases (at sales price) 176,000
Additional markups 20,000 Purchase returns (at cost) 4,000
Markup cancellations 3,000 Purchase returns (at sales price) 6,000
Markdowns 18,600 Beginning inventory (at cost) 60,000
Markdown cancellations 5,600 Beginning inventory (at sales price) 93,000
Freight on purchases 2,000
Instructions
Compute the ending inventory by the conventional retail inventory method.
Purchase this Solution
Solution Summary
The solution discusses retail inventory method for Greene Company.
Solution Preview
See the attached file.
Part 1 Gross Profit Method
Horton, Inc. suffered an inventory loss due to a flood. The following information is available to you.
Beginning inventory $100,000
Net purchase 400,000
Sales 400,000
Inventory salvaged from flood ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.