(Retail Inventory Method) Presented below is information related to Waveland Inc.
|
Cost |
Retail |
|
|
Inventory, 12/31/12 |
$250,000 |
$ 390,000 |
|
Purchases |
914,500 |
1,460,000 |
|
Purchase returns |
60,000 |
80,000 |
|
Purchase discounts |
18,000 |
— |
|
Gross sales (after employee discounts) |
— |
1,410,000 |
|
Sales returns |
— |
97,500 |
|
Markups |
— |
120,000 |
|
Markup cancellations |
— |
40,000 |
|
Markdowns |
— |
45,000 |
|
Markdown cancellations |
— |
20,000 |
|
Freight in |
42,000 |
— |
|
Employee discounts granted |
— |
8,000 |
|
Loss from breakage (normal) |
— |
4,500 |
Instructions
Assuming that Waveland Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2013.