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The records for the Clothing Department of Sharapova’s Discount

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The records for the Clothing Department of Sharapova’s Discount

P9-6 (Retail Inventory Method) The records for the Clothing Department of Sharapova’s Discount Store are summarized below for the month of January.Inventory, January 1,at retail:$25,000at cost:$17,000Purchases in January,at retail:137,000at cost:82,500Freight-in,7,000 Purchases returns,at retail:3,000at cost:2,300Transfers in from suburban branch,at retail:13,000at cost:9,200Net markups:8,000 Net markdowns:4,000 Inventory losses due to normal breakage, etc, at retail:at retail:400 Salesat retail:95,000 Sales returns:2,400 Instructions(a) Compute the inventory for this department as of January 31, at Retail(b) Compute the inventory using lower of average cost or market.



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