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Page 21 of 25 Question 21 (8 points) Candy Co. uses the conventional retail inventory...

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Accounting

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Page 21 of 25 Question 21 (8 points) Candy Co. uses the conventional retail inventory method to value its merchandise inventory. The following schedule (in scrambled order) is prepared for the current year: Cost Retail Beginning inventory $ 28,000 $ 65,000 Freight-in 2,600 Purchases 185,000 340,000 Sales revenue 235,000 Net markdowns 8,000 Normal damage 2,000 Net markups 5,400 Requirements: 1. What is the ending inventory at retail? (4 points) A/ Answer: Ending inventory at retail= 2. Show the work to calculate the cost-to-retail ratio under the conventional retail inventory method by filling out the amounts for the numerator (box a) and the denominator (box b) separately as indicated below. (2 points each) Cost-to retail ratio = (a)? (b) ? Not markdowns 8.000 Normal damage 2.000 Net markups 5.400 Requirements: 1. What is the ending inventory at retail? (4 points) Answer: Ending inventory at retail 2. Show the work to calculate the cost-to-retail ratio under the conventional retail inventory method by filling out the amounts for the numerator (box a) and the denominator (box b) separately as indicated below. (2 points each) Cost-to retail ratio- (b) 2 Answer: Amount in box (a)- A/ Amount in box (6)

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