Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 $ 250,000 $ 286,000 Purchases 672,000 888,000 Freight-in 14,000 Net markups 26,000 Net markdowns 4,500 Net sales 860,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided

261,690

Explanation:

The computation of inventory is shown below:-

Particulars                        Cost         Retail           Cost-to-Retail Ratio

Beginning inventory   $250,000    $286,000  

Add Purchases            $672,000   $888,000  

Freight-in                      $14,000

Net markup                                      $26,000  

Total                              $936,000   $1,200,000

Less: Net markdowns                       $4,500

Goods available for sale                   $1,195,000  

Cost-to-retail percentage                  0.78 (in working note)

Less: Net sales                                  $860,000

Retail Estimated ending

inventory                                            $335,500  ($1,195,000 - $860,000)

At cost Estimated ending

inventory                           $261,690

Cost-to-retail percentage is

= 936,000 ÷ 1,200,000

= 0.78

Estimated ending inventory at cost is

335,500 × 0.78

= 261,690

i believe the answer is: streets and roads

public property refers to the property that can be used by all legal citizens in a certain country. the public property was created and maintain using the government budget that allocated specifically for it. the budget itself come from the citizen's income tax payment.

was my answer wrong?