- Campbell Corporation Uses The Retail Method To Value Its Inventory The Following Information Is Available For The Year 1 (37.37 KiB) Viewed 87 times
Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost $215,000 612,130 9,000 Retail $305,000 865,000 Merchandise inventory, January 1, 2021 Purchases Freight-in Net markups Net markdowns Net sales 25,000 9,000 825,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Retail Cost-to-Retail Ratio $ Cost 215,000 $ 612,130 9,000 Beginning inventory Purchases Freight-in Net markups 305,000 865,000 25,000 1,195,000 (9,000) 1,186,000 Net markdowns Goods available for sale 836,130 Cost-to-retail percentage % Net sales Estimated ending inventory at retail Estimated ending inventory at cost (825,000) 361,000 $