1. what is the difference between ThredUp's inventory and consignment inventory? 2. How much revenue was made on Consignment items for 2021 and 2022? 3. What is the gross profit % on the Consignment items for the same years.
Added by Lauren G.
Step 1
- **Consignment Inventory**: Items that individuals send to ThredUp to sell on their behalf. The original owner (consignor) retains ownership of the item until it sells. ThredUp acts as an intermediary, showcasing the items on its platform. Once an item is sold, Show more…
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Teal Company began operations late in 2024 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2024 and no markdowns during 2024, the ending inventory for 2024 was $13,818 under both the conventional retail method and the LIFO retail method. At the end of 2025, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2025. The following data are available for computations. Cost Retail Inventory, January 1, 2025 $13,818 $20,500 Sales revenue 78,000 Net markups 8,800 Net markdowns 1,700 Purchases 60,100 79,000 Freight-in 1,892 Estimated theft 1,900 Compute the cost of the 2025 ending inventory under both: (a) The conventional retail method. Ending inventory using the conventional retail method: $18,690 (b) The LIFO retail method Ending inventory at cost: $4,464 Ending inventory at retail: $6,200
Akash M.
Required Information Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: a. The inventory at January 1, 2019, had a retail value of $39,000 and a cost of $31,130 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost Retail Gross purchases $200,150 $430,000 Purchase returns 5,000 26,000 Purchase discounts 4,400 Gross sales 397,500 Sales returns 8,000 Employee discounts 2,500 Freight-in 28,500 Net markups 19,000 Net markdowns 26,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $49,290, the cost-to-retail percentage for 2020 under the LIFO retail method was 78%, and the appropriate price index was 106% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $46,870, the cost-to-retail percentage for 2021 under the LIFO retail method was 77%, and the appropriate price index was 109% of the January 1, 2020, price level. Required: 3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021. Total ending inventory at dollar-value LIFO retail cost, 2020 Total ending inventory at dollar-value LIFO retail cost, 2021
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