Adams Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of September 2021: Cost Retail Beginning inventory $ 23,200 $ 36,800 Net purchases 11,600 ? Net markups 4,300 Net markdowns 1,300 Net sales ? The company used the average cost flow method and estimated inventory at the end of September to be $19,894.00. If the company had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%.
Adams Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of September 2021: Cost Retail Beginning inventory $ 23,200 $ 36,800 Net purchases 11,600 ? Net markups 4,300 Net markdowns 1,300 Net sales ? The company used the average cost flow method and estimated inventory at the end of September to be $19,894.00. If the company had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Adams Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of September 2021:
| Cost | Retail | |||
| Beginning inventory | $ | 23,200 | $ | 36,800 |
| Net purchases | 11,600 | ? | ||
| Net markups | 4,300 | |||
| Net markdowns | 1,300 | |||
| Net sales | ? | |||
The company used the average cost flow method and estimated inventory at the end of September to be $19,894.00. If the company had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%.
Required:
Compute net purchases at retail and net sales for the month of September using the information provided. (Do not round your intermediate calculations.)
Transcribed Image Text:Adams Corporation uses a periodic inventory system and the retail Inventory method to estimate ending Inventory and cost of goods
sold. The following data are available for the month of September 2021:
Beginning inventory
Net purchases
Net markups
Net markdowns
Net sales
Cost
$23,200
11,600
The company used the average cost flow method and estimated Inventory at the end of September to be $19,894.00. If the company
had used the LIFO cost flow method, the cost-to-retall percentage would have been 50%.
Required:
Compute net purchases at retail and net sales for the month of September using the information provided. (Do not round your
Intermediate calculations.)
Net purchases at retail
Net sales
Retail
$36,800
?
4,300
1,300
?
Answer is not complete.
$
20,200
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