Using the conventional retail method prepare a schedule

Assignment Help Accounting Basics
Reference no: EM13587890

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

(A) Using the conventional retail method, prepare a schedule computing estimated lower of cost or market inventory for October 31, 2013.

(B) 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.

Reference no: EM13587890

Questions Cloud

One saturday an electronics store gave away free mini-ipods : one saturday an electronics store gave away free mini-ipods to any customer who purchased merchandise totalling over
Estimated uncollectible taxes 65000 c collections from : the following information relates to the city of millersville for the fiscal year ending 123113.1. total fund balance -
Draw a position vs time graph and a velocity vs time graph : 1. an air puck bounces back and forth between two parallel walls always traveling perpendicular to the walls. each time
Clauss company transfers out 14000 units and has 2000 units : clauss company transfers out 14000 units and has 2000 units of ending work in process that are 25 complete. materials
Using the conventional retail method prepare a schedule : fuque inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. the
The value of the equilibrium constant for the chemical : the value of the equilibrium constant for the chemical equationh2 g i2 g lt-------gt 2hi gis kp 85 at 280 degrees
The coca-cola company uses an eva approach to performance : the coca-cola company uses an eva approach to performance measure which it calls economic profit. go to coca-colas
A person ate 0941 pound of cheese an energy intake of 7530 : question a person ate 0.941 pound of cheese an energy intake of 7530 kj. suppose that none of the energy was stored in
Initial investment outlay of 25 million comprised of 20 : felicia amp freds executive board has asked you to change the decision model previously completed to reflect the

Reviews

Write a Review

Accounting Basics Questions & Answers

  Deductible mileage for workday

Amy works as an auditor for a large major CPA firm. During the months of September thru and November of each year, she is permanently assigned to the team auditing Garnet Corporation. As a result, every day she drives from her home to Garnet and r..

  Finished goods inventory at the end of 2009 was 12000 units

1 fantastic futons manufactures futons. the estimated number of futon sales for the first three months of 2010 are as

  Compute the amount of gain

Ludwig, Inc., which owes Giffin Co. $1,600,000 in notes payable, is in financial difficulty. To eliminate the debt, Giffin agrees to accept from Ludwig land having a fair value of $1,220,000 and a recorded cost of $900,000.

  Analysis of rate of return

Create a formula to calculate your rate of return for each year. What is your overall return over the life of your investment? What is the average annual return over the life of the investment? Use the geomean function.

  Marison company makes two products x and y the contribution

marison company makes two products x and y. the contribution margin for x is 2 and the contribution margin for y is 3.

  X company prepares annual financial statements on september

x company prepares annual financial statements. on september 1 2014 x company paid 63000 in advance for a two-year

  Is there a specific period of time that should be used

is there a specific period of time that should be used when developing historical experience for groups of loans with

  What financial information ratios or otherwise would you

assume there is a well-financed one-year-old company in the biotech industry that is concentrating on developing

  Differences in book basis versus tax basis

The differences between the book basis and tax basis of the assets and liabilities at the end of 2008 are as follows: What is the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2008?

  Smart hardware purchased new shelving for its store on

smart hardware purchased new shelving for its store on april 1 2011. the shelving is expected to have a 20-year life

  Regular tax and tentative minimum tax

If joe and Jill choose to accelerate 50,000 of additional income into the current year, how much will their (a) regular tax and (b) tentative minimum tax increase? Joe and Jill's marginal tax rate is 35%.

  Preparing schedule indicating cash collections of accounts

The company expects to sell 20% of its merchandise for cash. Of sales on account, 50% are expected to be collected in the month of the sale, 30% in the month following the sale, and the remainder in the following month. Prepare a schedule indicati..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd