book inventory, retail, cost, shortages & overages
Pastel12
HW8.docx· Create a question about Book inventory @ Retail and @ Cost
Book Inventory @ Retail and @ Cost (4 pts)
Text Book Question: 4, 5, 6, 8,9, 11, 13, 14
4. The following figures are from a juniors’ sportswear department in a California store for May:
Markdowns $42,000
Purchases (retail) $180,000
Returns to vendors $3,500
Transfers in from Oregon store (retail) $8,000
Transfers out to Arizona store (retail) $4,000
Net Sales $125,000
Opening book inventory (retail) $315,000
(a) Determine the closing book inventory for May at retail.
(b) If Planned June book beginning inventory is supposed to be $319,200, what does the buyer need to do?
5. The following figures are from a small boutique, which has a 54% markup:
Net sales $6,000
Markdowns $2,000
Purchases (retail) $40,000
(a) Determine the closing book inventory at retail for the period.
(b) Convert the closing retail book inventory figure to the cost value.
6. Distinguish between physical inventory and book inventory. Which one is more likely to be affected by human error?Which one has become more accurate since the advent of electronic capability?
8. Calculate the April closing book inventory for the New York store given the following information (all figures are in retail value):
Opening book inventory $221,000
Net sales $27,400
Markdowns $9,100
Purchases $37,000
Returns to vendors $8,100
Transfers to the New Jersey store $1,500
Transfers from the Connecticut store $2,700
9. Calculate the October closing book inventory if October’s opening inventory at retail was $2,650, net sales were $375, markdowns for the month were $124, and new purchases were $1,195. If the October planned closing inventory was supposed to be $3,618, what would a buyer need to do to get to that inventory level?
11. A lingerie department buyer was given the following data:
Retail
Opening inventory $2,275,000
Purchases $550,000
Net Sales $900,000
Markdowns $378,000
(Includes employee discounts)
Calculate:
(a) The closing book inventory at retail.
(b) The closing inventory at cost if the planned cumulative markup is 63.8%.
13. Find the closing inventory at retail of a furniture department if:
Retail
Net Sales $330,000
Opening Inventory $325,000
Markdowns 15%
Returns to vendors $18,000
Employee discounts $6,500
Purchases $390,000
14. Utilize the following figures to calculate:
(a) The closing book inventory at retail
(b) The cost value of this closing book inventory.
(c) The cumulative markup percentage on merchandise handled.
Cost Retail
Opening Inventory $390,500 $1,562,000
Gross Profit $890,000 $3,000,000
Returns to vendors $3,800 $12,000
Freight $3,260
Net Sales $517,000
Customer returns $25,000
Markdowns $193,000
Shortages and Overages(3 pts):
Text Book Question: 19, 20, 21, 23, 26, 27
19. Physical inventory for the shoe department was $1,975,000 with a book inventory showing $2,160,000. Net sales for shoes for the year are $6,850,000. Was there a shortage or overage? What is the shortage or overage dollar amount and percentage?
20. A costume jewelry department showed the following figures for a year:
Net sales $125,000
Purchases (at retail) $105,000
Opening retail inventory (Feb. 1) $464,000
Markdowns $40,000
Employee discounts $2,600
Physical count (July 31) $397,000
(a) What was the shortage in dollars?
(b) What was the shortage in percentage?
(c) If the planned shortage was estimated at 2.5%, was the actual shortage more or less? By how much in dollars? In percentage?
21. Find the shortage or overage percentage if January figures are as follows:
Net sales $137,000
Opening inventory (retail) $640,000
Markdowns $27,000
Employee discounts $1,000
Retail purchases $96,000
Closing physical inventory $531,450
Net sales for the year $1,520,000
23. Find the shortage or overage percentage using the following data:
Opening inventory (retail) $1,204,000
Net Sales $342,000
Vendor returns $4,000
Transfers to branches $8,000
Employee discounts $1,000
Purchases (at retail) $495,000
Markdowns $146,000
Closing physical inventory $1,287,000
Yearly net sales $2,875,000
26. For the six- month period ending in January, your department showed the following figures:
Opening inventory (retail) $1,262,000
Customer returns $10,000
Returns to vendor $6,200
Employee discounts $3,800
Net sales $910,000
Retail purchases $870,000
Markdowns 60%
Transfers in $5,100
Transfers out $4,000
Physical inventory $638,000
Yearly net sales $1,654,000
(a) What are the markdown dollars? b. Determine the overage or shortage in both dollars and percentage
27. Find the following:
(a) January closing book inventory given the following:
January sales $323,000
January markdowns $140,000
January receipts $230,000
January BOM $2,761,000
(b) If a physical inventory was taken and the actual inventory is $2,400,000. Is there a shortage or overage, and by how much in dollars?
© If the yearly net sales are $5,600,000, what is the shortage or overage %?
Additional (3 pts):
1. Using the following figures, determine closing book inventory. (Not all information given may be needed.)
· Opening inventory $ 62,980
· Gross purchases $ 43,620
· RTV $ 860
· Markdowns 5,246
· Employee discounts 784
· Gross sales 49,318
· Customer returns 1,918
2. Calculate July closing book Inventory at retail if:
· Opening book inventory is $972,000
· Net sales are $630,000
· Markdowns are 25%
· Receipts are $464,260
3. Determine Book Inventory @ Cost, given following information
Cost Retail
Opening inventory $34,890 $52,914
Net purchases 12,116 28,709
Freight 120
Net transfers out (use as reduction) 344 818
Gross sales 29,368
Customer returns 2,134
Net markdowns 1,024
Employee discounts 362
