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  • Chapter 8 Inventory

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    Kiminosunoo Lel
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    1. The document provides information on beginning inventory, purchases, total goods available, ending inventory, and cost of goods sold to calculate gross profit percentages based on both cost and sales. It also includes a cost ratio calculation. 2. Inventory information is given for beginning inventory, purchases, total goods available, ending inventory, goods in transit, theft losses, and cost of goods sold. 3. Gross profit information is shown for two years including sales, beginning inventory, purchases, total goods available, ending inventory, and cost of goods sold to calculate gross profit amounts and percentages. An inventory loss due to fire is also provided.

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    Original Title

    CHAPTER 8 INVENTORY

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    1. The document provides information on beginning inventory, purchases, total goods available, ending inventory, and cost of goods sold to calculate gross profit percentages based on both cost and sales. It also includes a cost ratio calculation. 2. Inventory information is given for beginning inventory, purchases, total goods available, ending inventory, goods in transit, theft losses, and cost of goods sold. 3. Gross profit information is shown for two years including sales, beginning inventory, purchases, total goods available, ending inventory, and cost of goods sold to calculate gross profit amounts and percentages. An inventory loss due to fire is also provided.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    22 views5 pages

    Chapter 8 Inventory

    Uploaded by

    Kiminosunoo Lel
    1. The document provides information on beginning inventory, purchases, total goods available, ending inventory, and cost of goods sold to calculate gross profit percentages based on both cost and sales. It also includes a cost ratio calculation. 2. Inventory information is given for beginning inventory, purchases, total goods available, ending inventory, goods in transit, theft losses, and cost of goods sold. 3. Gross profit information is shown for two years including sales, beginning inventory, purchases, total goods available, ending inventory, and cost of goods sold to calculate gross profit amounts and percentages. An inventory loss due to fire is also provided.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 5

    1.

    )
    BASED ON SALE BASED ON COST
    Beg Inventory 80,000.00 Net Sales 125%
    add: Net Purchase 348,000.00 less: Cost of Sales 100%
    Total Goods Available for 428,000.00 Gross Profit based on Cost 25%
    less: Ending Inventory 89,000.00
    Cost of Goods Sold 339,000.00 Gross Profit based on Sales 20.00%

    Cost Ratio 80.00%

    Net sales 452000.00


    Cost Ratio 80.00%
    Cost of Goods Sold 361600.00

    Beg Inventory 80,000.00


    add: Net Purchase 348,000.00
    Total Goods Available for Sol 428,000.00
    less: Ending Inventory 66,400.00
    Cost of Goods Sold 361,600.00

    2.)

    Beg Inventory 162,000.00 Ending Inventory 555,400.00


    Net Purchase 3,412,000.00 less: Goods in transit 56,000.00
    Total Goods Available for 3,574,000.00 Lost due to theft 499,400.00
    Ending Inventory 555,400.00
    Cost of Goods Sold 3,018,600.00

    3.)
    GROSS PROFIT
    2001 2002

    Sales (net) 772,000 100% 816,000 100%


    Cost of goods sold:
    Beginning inventory 0 173,120
    Purchases(net) 813,880 627,400
    Goods availbale for sale 813,880 800,520
    Ending inventory 173,120 147,720
    Cost of good sold 640,760 83% 652,800 80%
    Gross Profit on sales 131,240 17% 147,720 20%

    December 31,2002
    Ending inventory(cost) 147,720
    Less: Cost of undamaged inventory (24,000x.80) 19,200.00
    Net realizable value of damaged merchandise 3,600
    Inventory loss due to fire 124,920.00

    4.)

    Beg Inventory 80,000.00


    Net Purchase 10,000.00
    Total Goods Availble for 90,000.00
    less:Ending Inventory 30,000.00
    Cost of Goods Sold 60,000.00
    7.) Cost Retail

    Inventory 45,000 75,000


    Net purchases 276,750 590,000
    Net Markups . 50,000
    Net Markdowns -20,000
    Normal Shrinkage 12,000
    Total goods available for Sale 321,750 707,000
    Net Sales 540,000
    Ending Inventory Retail 167,000
    Average Cost Ratio: 46%

    Ending Inventory at retail 167,000


    Multiply by: Average Cost ratio 46%
    Ending Inventory at Cost 76820

    Total goods available for sale at cost 321,750


    Ending inventory at cost 76,820
    Cost of good Sold 244,930

    276,750
    632000
    FIFO Cost ratio: 44%

    321,750 167,000
    73,129.30 44%
    248,620.7 73129.3

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