Problemfuque inc uses the retail inventory method to, Ask an Expert

Accounting

Problem:

Fuque 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 2013.

Inventory, October 1, 2013

At cost................................ $ 52000
At retail............................... 78000
Purchases
At cost................................ 272000
At retail............................... 423000
Freight in............................. 16600
Purchase Returns
At cost................................ 5600
At retail.............................. 8000
Markups............................... 9000
MArkup Cancellation................ 2000
Markdowns........................... 3600
Normal Spoilage and breakage... 10000
Sales................................... 390000

Required:

Question 1: Using the conventional retail method, prepare a schedule computing estimated lower of cost or market inventory for October 31, 2013.

Question 2: A department store using the conventional retail inventory method estimates the cost of its ending inventory as $60000. An accurate physical count reveals only $47000 of inventory at lower of cost or market. List the factors that may have caused the difference between the computed inventory and the physical count.

Note: Please describe comprehensively and provide step by step solution.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165964

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - sheffield corporation operates a retail computer

Question - Sheffield Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2017. The terms of acquisition for each truck are described ...

Question - tippah antiques uses the periodic inventory

Question - Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Tippah's records for the year 2016: beginning balance in ...

Question - on january 1 year 1 homeland entity he signed a

Question - On January 1, year 1, Homeland Entity (HE) signed a 20-year lease contract for an office building. The lease contract calls for HE to make payments of $10,000 at the beginning of each year, with the first paym ...

Question solve the following questions by using excel

Question: Solve the following questions by using Excel formula. Show me your data 1. If you deposit $20,000 in a bank account that pays 15% interest annually, how much will be in your account after 6 years? 2. If you are ...

Question - sometimes a temporary difference will produce

Question - Sometimes a temporary difference will produce future deductible amounts. Explain what is meant by future deductible amounts. Describe at least one situation that has this effect. How are future deductible amou ...

Question - restricted stockon december 31 2014 ying

Question - Restricted Stock On December 31, 2014, Ying Corporation granted 5,000 shares of its $1 par value common stock to certain of its key employees. The shares are restricted until 2 years of employment is completed ...

Question - geraldo recently won a lottery and chose to

Question - Geraldo recently won a lottery and chose to receive $145,000 today instead of an equivalent amount in 10 years, computed using an 8 percent rate of return. Today, he learned that interest rates are expected to ...

Question - the following information is available for the

Question - The following information is available for the 21,000 units of X Company's one product sold in 2017: Selling price $46.00 Variable costs per unit $30.00 Total fixed costs $756,000 In 2018, X Company expects sa ...

Question instructions first locate the financial statement

Question: Instructions: First, locate the financial statement (10 - K Annual Reporting) information for each company (listed below) that you will be investigating for your final project. This information can be found on ...

Question each part should be supported with extensive text

Question: Each part should be supported with extensive text explaining and supporting the details of your plan. Part Two - List of financial goals (short, medium, and long-term) ? ?You should have a minimum of 3 for each ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert