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 $ 24,000 114,600 5,675 5,500 Retail $ 32,000 177,000 7,500 12,000 9,000 5,400 164,000 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.
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 $ 24,000 114,600 5,675 5,500 Retail $ 32,000 177,000 7,500 12,000 9,000 5,400 164,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
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.
Net markdowns
Goods available for sale
Cost-to-retail percentage
Cost
$ 24,000
114,600
5,675
5,500
Normal spoilage
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$ 32,000
177,000
$
7,500
12,000
9,000
5,400
164,000
Cost
24,000 $
24,000
Retail
32,000
32,000
32,000
32,000
Cost-to-Retail
Ratio
%
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