Sunland Inc. uses the retail inventory method to estimate ending inventory for its monthly financial...
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Sunland Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2021.
| Inventory, October 1, 2021 | ||
| At cost | $52,900 | |
| At retail | 78,600 | |
| Purchases (exclusive of freight and returns) | ||
| At cost | 283,025 | |
| At retail | 425,100 | |
| Freight-in | 16,400 | |
| Purchase returns | ||
| At cost | 5,600 | |
| At retail | 8,000 | |
| Markups | 8,800 | |
| Markup cancellations | 2,000 | |
| Markdowns (net) | 3,500 | |
| Normal spoilage and breakage | 9,800 | |
| Sales revenue | 397,200 |
(a) Using the conventional retail method, prepare a schedule computing estimated lower-of-cost-or-market inventory for October 31, 2021. (Round ratios for computational purposes to 0 decimal places, e.g 78% and final answer to 0 decimal places, e.g. 28,987.)
| Ending inventory at lower-of-cost-or-market | $ |
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