You are on page 1of 5

AMPD 3033 Practice Test 4

The Retail Method of Inventory


1. Using the following figures from a menswear department, find the
closing book stock at retail.
Physical inventory January 15
$105,000
Purchases retail January 16 through July 15
$210,000
Gross sales
$230,000
Returns from customers
$40,000
Return to vendors
$8,000
Markdowns
$18,000

2. The

a.
b.

following figures are from a small boutique, which has a 55% MU


Opening book inventory at retail
$20,000
Net Sales
$42,000
Markdowns
$3,000
Purchases (retail)
$55,000
Determine the retail book inventory for the period
Convert the closing retail book inventory figure to the cost value.

3. The ladies accessory department has a closing book inventory, at


retail, of $600,000 and had achieved a 55.6% markup on total
merchandise handled. Determine the closing inventory at cost.

4. A sportswear department buyer was given the following data:


Cost

Opening inventory
$630,000
Purchases
Net Sales
Markdowns

Calculate
a. The closing book inventory at retail
b. The closing book inventory at cost

Retail
$425,000

$1,120,000

$2,285,000
$1,550,000
$105,000

5. Last year, the net sales in a mens denim department were $455,000.
The book inventory at year-end was $76,500, and the physical
inventory was $75,000. What was the shortage percentage?

6. If the retail book inventory at the close of the year is $1,250,000 and
the physical inventory totals only $1,075,000, what will be the
shortage percentage, if net sales were $12,000,000?

7. Find the shortage or overage percentage if:


Net sales
$146,000
Opening inv (retail)
$149,000
Markdowns
$8,000
Employee Discounts
$1,500
Retail purchases
$102,000
Closing physical inventory
$94,150

8. The merchandise plan for fall shows planned sales of $55,000 with an
estimated shortage of 1.5%. What are the planned dollar shortages
for fall?

9. The net sales of a maternity department were $325,000;inventory on


February 1 was $175,000;markdowns were 10% of net sales;
purchases for this period were $382,000;the physical inventory taken
on July 31 was $198,600
a. Was there a dollar shortage for this period
b. What was the shortage or overage percentage for this period?

10.
A ladies outerwear department had an opening inventory of
$370,000. The net purchases were $86,000, gross sales were
$152,150, customer returns were $12,250, and markdowns-including
employee discounts-were $5200. Shortages of 1.5 % were estimated.
Calculate.
The closing retail book inventory
The estimated physical inventory