197. A company uses the retail inventory method and has the following information available concerning its most recent accounting period: At Cost At Retail Beginning-of-period...

197. A company uses the retail inventory method and has the following information available concerning its most recent accounting period:

1. What is the cost-to-retail ratio using the retail method?

2. What is the estimated cost of the ending inventory?

198. Forever YoungGame Stores (FYG) has taken a physical count of its inventory at March 31, its fiscal year-end. After reviewing the accounting records and documentation, the following items have been discovered:

(a) An invoice from Shreck Co. indicates that $30,000 of games were shipped to FYG on March 27, terms FOB shipping point. The games and invoice did not arrive at FYG until February 2 and were not included in the physical count.

(b) An invoice from Gamers, Inc. indicates that $8,000 of games were shipped to FYG on March 29, terms FOB destination. The games and invoice did not arrive at FYG until February 2 and were not included in the physical count.

The physical count and cost assignment on March 31 prior to these two items is $440,000. The cost of goods sold for FYG is $2,100,000.

1. Calculate the amount that should be reported as ending inventory for FYG.

2. Calculate the days’ sales in inventory before and after the appropriate adjustments for inventory.

199. A company reported the current month purchase and sales data for its only product and uses the perpetual inventory system. Determine the cost assigned to ending inventory and cost of goods sold using FIFO.