Aztec 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: Beginning inventory Net purchases Net markups Net markdowns Net sales Cost $ 21,400 10,700 Retail $ 38,600 8,500 2,500 ? The company used the average cost flow method and estimated inventory at the end of September to be $17,120.00. 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. Note: Do not round your intermediate calculations.
Aztec 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: Beginning inventory Net purchases Net markups Net markdowns Net sales Cost $ 21,400 10,700 Retail $ 38,600 8,500 2,500 ? The company used the average cost flow method and estimated inventory at the end of September to be $17,120.00. 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. Note: Do not round your intermediate calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Aztec 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:
Beginning inventory
Net purchases
Net markups
Net markdowns
Net sales
Cost
$ 21,400
10,700
Net purchases at retail
Net sales
The company used the average cost flow method and estimated
inventory at the end of September to be $17,120.00. If the company had
used the LIFO cost flow method, the cost-to-retail percentage would have
been 50%.
$
Retail
$ 38,600
Required:
Compute net purchases at retail and net sales for the month of
September using the information provided.
Note: Do not round your intermediate calculations.
8,500
2,500
15,400
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