RETAIL METHOD

↳ ret mark
up
Cancellation

C
 Cost Ratio (Conservatie)
Cost Retail
600000 =
%
6

7) Beg . Inu .
850, 000 1, 200 000
,

9, 14, 700 Ratio (Are Cost)

600
purchases 200 000 000 Cost

,000
, .
% o
,
= 6
Freightin 200, 000
--

Purchase returns (300, 000) (500 000)

,
Net Sales :

Purchase (150 , 000 Sales : 9, 500 000

Allowances >
-
,

Purchase Discounts (400, 000) - Sales returns . (1 ,

000
,
000]

Departamental transfer debit 300, 000 Employee discount :

or
500, 000

TGAS 2 Cost 000 Normal Shoplifting losses :

- Goooo
,

Net markups Normal Shrinkage

:
00 o
on

TGAS 2 Retail (Conservative) ooo

Net Markdown

TGAS & Retail (Ave

. Cost)
Ending
15, 000 , 000
Ending 2 Cost Inv. & Retail X ratio
=
Inr
. . cost

Net sales 0
000 000)
, , (conservative) =
5, 000
,
000 x 60 %

End Inv
. & retail 3, 000, 000 000 000

=
.

Ending Inr . Of Cost =

Ending In . & Retail X cost Vatio

CAre cost) =
5, 000
, 000
,
x 64 %

-200
000
,

2
)
.
cost Retail
Beg. Inventory 560, 000 Cost Ratio (Conservative)
100
1, 000 000
:

1000 %o
6
,
=

oooo
Net Purchases 6, 200 000
,

TGAS & Cost

51000300-20s e (AreCost)
450000
Net Mark Up , 000
400 -> cost Ratio
=

,
- - -

62"
TGAS & Cost 7, 600, 000
=

(conservative)
50K
Net Mark down
000) E
200 ,
30k
120K Ending Inr
. 2 Cost =
Ending Inv. .
& Retail X cost ratio

THAS & Cost 7 ,

400 , 000 (conservative ( =
2
,
000, 000 x 40 %
lAVe
.
Cost] =
1 200 , 000
,

socio
Net Sales Ending
Ending & Retail
e
Inr
. 2 Cost =
Inv. . X cost ratio

Ending In
. & Retail CAve. Cost ) = 2, 000
, 000 x 62 %
=
I 240 , 000
,
 ⑥

(savee e

-42Ma To en
4 2M
Not Purchases
.

Mark Up

Mark down
Net

!. 65
Beg In .
5 850M = &M
In End 3

(
.
.

6 HM
.

Net purchases 800k

=
65 %
Markup
O Net
Net Markdown -oood Im .
End =
1
,
950 , 000
GAS (RET ).
= &M
5 , 850 , 000 costs = 15 % LessInvEnd (PET)
Net sales

O (ASE cost
5, 850
,
000

InEndecost accor
 Cost Retail
3
.

BayInventory roloroe.
2 000 000 Cost Ratsu
2
850 000
, ,
= , , =
%
65
8
(FIFO) 9
Net 000 000 000 000
purchages , , / ,

CD NANPEGM
LNMD = (500K)-

Ending In Retail Ratio

Inventory of
Net Mark up Lost of
Ending Cost
1 , 500, 000 =
x
- -

TGAS & Retail %

=
11 ,
500 000
,
3, ,
500
,000 x 45

(conservative) = 2 , 275 000

,

Net Mark down 2500 000) ,

-
TGAS & Retail 1 , 006 000
,

(Are 20st)

soooo
e
Net sales

Ending Inv. 2 Retail

4) Cost Retail 4 ,
200 000
,

Beg
. Inventory
1 450, 000
,
2, 000
,
000

> -600k
- (NPDRetail + NMU-N

&
Net purchases 4 200 000 4 , 400 , 000
, ,
-
000
TGAS of Cost
200
5 850 , 000 ,
Work back
,

ow
look
Gooooe
Net Mark UP

Net purces es
Net Mark down

TGAS & Retail

urovoroe
D
1000
E880
Net Sales - -
65 % -Cost Ratie
=

. &
End Im Retail

Ending Inventory & Cost =

1 , 950 , 000

1 , 950, 000 = 65 %
Ending Inventory & Ret . =

=
3 , 000 , 006

LESSTGAs &Ret =
( 9 , 000 , 000)
Net Sales =
6 000 000
, ,

COGS =
TGAS -

Inv .
End
=
5 , 850 , 060

00
450
,