Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Net sales Cost $ 27,000 117,600 Beginning inventory Purchases 7,270 7,000 Freight-in Purchase returns Net markups Required: Complete the table below to estimate the ending inventory and cost of goods sold, applying the conventional retail method using the information provided. Retail $ 35,000 180,000 Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%. ). Enter amounts to be deducted with a minus sign. 9,000 13,500 10,500 5,700 167,000 $ Cost 27,000 $ 117,600 7,270 (7,000) Retail 35,000 180,000 (9,000) 13.500 Cost-to-Retail Ratio
Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Net sales Cost $ 27,000 117,600 Beginning inventory Purchases 7,270 7,000 Freight-in Purchase returns Net markups Required: Complete the table below to estimate the ending inventory and cost of goods sold, applying the conventional retail method using the information provided. Retail $ 35,000 180,000 Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%. ). Enter amounts to be deducted with a minus sign. 9,000 13,500 10,500 5,700 167,000 $ Cost 27,000 $ 117,600 7,270 (7,000) Retail 35,000 180,000 (9,000) 13.500 Cost-to-Retail Ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Dok
int
ences
Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost of goods sold. The following data
are available:
Beginning inventory
Purchases
Freight-in
Purchase returns.
Net markups
Net markdowns
Normal spoilage
Net sales
Beginning inventory
Purchases
Freight-in
Purchase returns
Net markups
Cost
$ 27,000
117,600
Net markdowns
Goods available for sale
Cost-to-retail percentage
Normal spoilage
7,270
7,000
Required:
Complete the table below to estimate the ending inventory and cost of goods sold, applying the conventional retail method using the
information provided.
Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a
minus sign.
Retail
$ 35,000
180,000
$
9,000
13,500
10,500
5,700
167,000
Cost
27,000 $
117,600
7,270
(7.000)
144,870
Retail
35,000
180,000
(9,000)
13,500
219,500
(10,500)
209,000
(5,700)
Cost-to-Retall
Ratio
69.32 %
Transcribed Image Text:information provided.
Inventory and cost of goods sold, applying the conventional retail method using the
Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%. ). Enter amounts to be deducted with a
minus sign.
Beginning inventory
Purchases
Freight-in
Purchase returns.
Net markups
Net markdowns
Goods available for sale
Cost-to-retail percentage
Normal spoilage
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
are the
$
Cost
27,000 $
117,600
7,270
(7,000)
144,870
$
Retail
35,000
180,000
(9,000)
13,500
219,500
(10,500)
209,000
(5,700)
(167,000)
36,300
Cost-to-Retail
Ratio
69.32 %
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