2023 Question 1 A retailer has yearly sales of 650 000 Inventory on January 1 is 250 000 at | Assignments Online

Question # 1:

A retailer has yearly sales of $650,000.  Inventory on January 1 is $250,000 (at cost).  During the year, $500,000 of merchandise (at cost) is purchased.  The ending inventory is $275,000 (at cost).  Operating costs are $90,000. 

• a. Calculate the cost of goods sold
• b. Calculate the net profit

Question # 2:

A retailer has a beginning monthly inventory valued at $60,000 at retail and $35,000 at cost.  Net purchases during the month are $140,000 at retail and $70,000 at cost.  Transportation charges are $17,000.  Sales are $150,000.  Markdowns and discounts equal $20,000.  A physical inventory at the end of the month shows merchandise valued at $10,000 (at retail) on hand.  Compute the following:

• a. Total merchandise available for sale – at cost and at retail
• b. Cost complement
• c. Ending retail book value of inventory
• d. Stock shortages
• e. Adjusted ending retail book value
• f. Gross profit

Question # 3:

A car dealer purchased multiple –disc CD players for $1185 each and desires a 40% markup (at retail).  What retail price should be charged?