Answer:
The ending inventory for Marin comapny is $1664460
Explanation:
Solution
An Inventory is computed by using the conventional retail inventory method. which is statted belwo:
Inventory computed  for Marin Company
                              Cost        Retail
Beginning of Inventory         $103,820      $278,000
Purchases                    1,402,000      2,152,000
Total                        1505820       243,000
Add: Net Markups
Markups                                   93,600
Markup cancellations                       -13,900
                                         79700
Total                        1505820       2509700
Deduct: Net Markdown
Markdown                                 34,600
Markdown cancellation                      -5,000
                                         29,600
Sales price of goods                         2480100
Sales revenue                              2,206,000
The retail ending is                          274,100
Thus,
The retail cost ratio is = Â 1505820 /2509700 = 60%
Hence, the cost of Ending inventory becomes = Â 274,100 * 60%
= $1664460. Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
