Dollar Dress Shop’s inventory at cost on January 1 was $82,800. Its retail value was $87,500. During the year, Dollar purchased additional merchandise at a cost of $300,000 with a retail value of $325,000. The net sales at retail for the year were $295,000. Calculate Dollar’s inventory at cost by the retail method.
Dollar Dress Shop’s inventory at cost on January 1 was $82,800. Its retail value was $87,500. During the year, Dollar purchased additional merchandise at a cost of $300,000 with a retail value of $325,000. The net sales at retail for the year were $295,000. Calculate Dollar’s inventory at cost by the retail method.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...
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Dollar Dress Shop’s inventory at cost on January 1 was $82,800. Its retail value was $87,500. During the year, Dollar purchased additional merchandise at a cost of $300,000 with a retail value of $325,000. The net sales at retail for the year were $295,000. Calculate Dollar’s inventory at cost by the retail method.
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