Pet Emporium had a robbery on the weekend in which a large amount of inventory was taken. The loss is covered completely by insurance. A physical inventory count determined that the cost of the remaining merchandise is $58,100. The following additional information is available:
At Cost
At Retail
Beginning merchandise inventory
$
74,600
$
93,350
Purchase returns and allowances
14,600
19,600
Purchases
1,203,910
1,732,250
Transportation-in
18,350
Sales
1,638,500
Sales returns and allowances
17,600
Required:
1. Prepare an estimate of ending merchandise inventory using the retail method.
2. Calculate the cost of the stolen inventory.
Pet Emporium had a robbery on the weekend in which a large amount of inventory was taken. The loss is covered completely by insurance. A physical inventory count determined that the cost of the remaining merchandise is $58,100. The following additional information is available:
Required:
1. Prepare an estimate of ending merchandise inventory using the retail method.
2. Calculate the cost of the stolen inventory.
Related questions
Given the following information, prepare in good form the costof goods sold section of an income statement for 20x5.
Freight-In | $ 4,000 |
Merchandise Inventory, December 31, 20x4 | 15,000 |
Merchandise Inventory, December 31, 20x5 | 16,000 |
Purchases | 38,000 |
Purchases Returns and Allowances | 1,800 |
ANS:
Merchandise Inventory, December 31, 20x4 | $ | ||
Purchases | $ | ||
Less Purchases Returns and Allowances |
| ||
Net purchases | $ | ||
Freight-in |
| ||
Net cost of purchases |
| ||
Cost of goods available for sale | $ | ||
Less Merchandise Inventory, December 31, 20x5 |
| ||
Cost of Goods Sold | $ |
