Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 53

Song Meister is a popular music store.uring the current year, the company's cost of goods available for sale amounted to $330,000.he retail sales value of this merchandise amounted to $600,000.ales for the year were $520,000.
Instructions
a.sing the retail method, estimate (1) the cost of goods sold during the year and (2) the inventory at the end of the year.
b.t year-end, Song Meister takes a physical inventory.he general manager walks through the store counting each type of product and reading its retail price into a tape recorder.rom the recorded information, another employee prepares a schedule listing the entire ending inventory at retail sales prices.he schedule prepared for the current year reports ending inventory of $75,000 at retail sales prices.
1.se the cost ratio computed in part a to reduce the inventory counted by the general manager from its retail value to an estimate of its cost.
2.etermine the estimated shrinkage losses (measured at cost) incurred by Sing Along during the year.
3.ompute Song Meister's gross profit for the year.Include inventory shrinkage losses in the cost of goods sold.)
c.hat controls might Song Meister implement to reduce inventory shrinkage