1460T_c09.qxd01:09:200609:04 AM Page457 EQA Exercises·457 Instructions Compute the inventory by the conventional retail inventory method. (L0 6)E9-20 (Retail Inventory Method)The records of Ellen's Boutique report the following data for the month of April. Sales $99.000 Purchases (at cost) $48.000 Sales returns 2.000 Purchases (at sales price) 88.000 Markups 10.000 Purchase returns (at cost) 2.000 Markup cancellations 1,500 Purchase returns (at sales price) 3,000 Markdowns 9.300 Beginning inventory (at cost) 30.000 Markdown cancellations 2,800 Beginning inventory (at sales price) 46,500 Freight on purchases 2,400 Instructions Compute the ending inventory by the conventional retail inventory method. (L0 7)E9-21 (Analysis of Inventories)The financial statements of General Mills,Inc's.2004 annual report disclose the following information. (in millions) May30,2004 May25,2003 May26,2002 Inventories $1,063 $1.082 $1,055 Fiscal Year 2004 2003 Sales $11,070 $10,506 Cost of goods sold 6,584 6,109 Net income 1,055 917 Instructions Compute General Mills's(a)inventory turnover and (b)the average days to sell inventory for 2004 and 2003. (L0 8)*E9-22 (Retail Inventory Method-Conventional and LIFO)Helen Keller Company began operations on January 1,2006,adopting the conventional retail inventory system.None of the company's merchan- dise was marked down in 2006 and,because there was no beginning inventory,its ending inventory for 2006 of $38,100 would have been the same under either the conventional retail system or the LIFO retail system. On December 31,2007,the store management considers adopting the LIFO retail system and desires to know how the December 31,2007,inventory would appear under both systems.All pertinent data regard- ing purchases,sales,markups,and markdowns are shown below.There has been no change in the price level. Cost Retail Inventory,Jan.1,2007 $38,100 $60,000 Markdowns (net) 13,000 Markups (net) 22.000 Purchases (net) 130,900 178.000 Sales (net) 167.000 Instructions Determine the cost of the 2007 ending inventory under both (a)the conventional retail method and (b)the LIFO retail method. (L0 8)*E9-23 (Retail Inventory Method-Conventional and LIFO)Leonard Bernstein Company began operations late in 2006 and adopted the conventional retail inventory method.Because there was no be- ginning inventory for 2006 and no markdowns during 2006,the ending inventory for 2006 was $14,000 under both the conventional retail method and the LIFO retail method.At the end of 2007,management wants to compare the results of applying the conventional and LIFO retail methods.There was no change in the price level during 2007.The following data are available for computations. Cost Retail Inventory,January 1,2007 $14.000 $20.000 Sales 80,000 Net markups 9,000 Net markdowns 1,600 Purchases 58,800 81.000 Freight-in 7,500 Estimated theft 2,000Instructions Compute the inventory by the conventional retail inventory method. E9-20 (Retail Inventory Method) The records of Ellen’s Boutique report the following data for the month of April. Sales $99,000 Purchases (at cost) $48,000 Sales returns 2,000 Purchases (at sales price) 88,000 Markups 10,000 Purchase returns (at cost) 2,000 Markup cancellations 1,500 Purchase returns (at sales price) 3,000 Markdowns 9,300 Beginning inventory (at cost) 30,000 Markdown cancellations 2,800 Beginning inventory (at sales price) 46,500 Freight on purchases 2,400 Instructions Compute the ending inventory by the conventional retail inventory method. E9-21 (Analysis of Inventories) The financial statements of General Mills, Inc’s. 2004 annual report disclose the following information. (in millions) May 30, 2004 May 25, 2003 May 26, 2002 Inventories $1,063 $1,082 $1,055 Fiscal Year 2004 2003 Sales $11,070 $10,506 Cost of goods sold 6,584 6,109 Net income 1,055 917 Instructions Compute General Mills’s (a) inventory turnover and (b) the average days to sell inventory for 2004 and 2003. *E9-22 (Retail Inventory Method—Conventional and LIFO) Helen Keller Company began operations on January 1, 2006, adopting the conventional retail inventory system. None of the company’s merchan￾dise was marked down in 2006 and, because there was no beginning inventory, its ending inventory for 2006 of $38,100 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2007, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2007, inventory would appear under both systems. All pertinent data regard￾ing purchases, sales, markups, and markdowns are shown below. There has been no change in the price level. Cost Retail Inventory, Jan. 1, 2007 $ 38,100 $ 60,000 Markdowns (net) 13,000 Markups (net) 22,000 Purchases (net) 130,900 178,000 Sales (net) 167,000 Instructions Determine the cost of the 2007 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. *E9-23 (Retail Inventory Method—Conventional and LIFO) Leonard Bernstein Company began operations late in 2006 and adopted the conventional retail inventory method. Because there was no be￾ginning inventory for 2006 and no markdowns during 2006, the ending inventory for 2006 was $14,000 under both the conventional retail method and the LIFO retail method. At the end of 2007, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2007. The following data are available for computations. Cost Retail Inventory, January 1, 2007 $14,000 $20,000 Sales 80,000 Net markups 9,000 Net markdowns 1,600 Purchases 58,800 81,000 Freight-in 7,500 Estimated theft 2,000 Exercises • 457 (L0 6) (L0 8) (L0 8) (L0 7) 1460T_c09.qxd 01:09:2006 09:04 AM Page 457