Harley Inc. uses the conventional retail method to estimate its ending inventories. The following data has been summarized for December 31, 2009:
Required:
Estimate the cost of ending inventory applying the conventional retail method.
$$\begin{array} { l c r }
& \text { Cost } & { \text { Retail } } \
\text { Inventory, January 1 } & \$ 208,000 & \$ 280,000 \
\text { Purchases } & 470,000 & 610,000 \
\text { Net markups } & & 15,300 \
\text { Net markdowns } & & 11,200 \
\text { Normal spoilage } & & 4,600 \
\text { Net sales } & & 489,500
\end{array}$$

Question

Harley Inc. uses the conventional retail method to estimate its ending inventories. The following data has been summarized for December 31, 2009:
Required:
Estimate the cost of ending inventory applying the conventional retail method.
 $$\begin{array} { l c r } 
& \text { Cost } &  { \text { Retail } } \
\text { Inventory, January 1 } & \$ 208,000 & \$ 280,000 \
\text { Purchases } & 470,000 & 610,000 \
\text { Net markups } & & 15,300 \
\text { Net markdowns } & & 11,200 \
\text { Normal spoilage } & & 4,600 \
\text { Net sales } & & 489,500
\end{array}$$

Quizplus · Accepted Answer

The Answer of Harley Inc. uses the conventional retail method to estimate its ending inventories. The following data has been summarized for December 31, 2009:
Required:
Estimate the cost of ending inventory applying the conventional retail method.
 $$\begin{array} { l c r } 
& \text { Cost } &  { \text { Retail } } \
\text { Inventory, January 1 } & \$ 208,000 & \$ 280,000 \
\text { Purchases } & 470,000 & 610,000 \
\text { Net markups } & & 15,300 \
\text { Net markdowns } & & 11,200 \
\text { Normal spoilage } & & 4,600 \
\text { Net sales } & & 489,500
\end{array}$$