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 $ 21,000 10,500 Retail $ 35,000 2 4,000 1,000 The company used the average cost flow method and estimated inventory at the end of September to be $17.437.50. 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. 18,000 21,470 Answer is complete but not entirely correct. Net purchases at retail $ Net sales $
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 $ 21,000 10,500 Retail $ 35,000 2 4,000 1,000 The company used the average cost flow method and estimated inventory at the end of September to be $17.437.50. 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. 18,000 21,470 Answer is complete but not entirely correct. Net purchases at retail $ Net sales $
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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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
$ 21,000
10,500
The company used the average cost flow method and estimated inventory at the end of September to be $17.437.50. If the company
had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%
Retail
$ 35,000
2
4,000
1,000
?
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.
Net purchases at retail $
Net sales
$
Answer is complete but not entirely correct.
18,000
21,470](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc11903c1-80f8-49f6-b032-0e22f7384d0f%2F67cf194f-1c84-4a03-a4f5-38f7a912486e%2F37rdu9i_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
$ 21,000
10,500
The company used the average cost flow method and estimated inventory at the end of September to be $17.437.50. If the company
had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%
Retail
$ 35,000
2
4,000
1,000
?
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.
Net purchases at retail $
Net sales
$
Answer is complete but not entirely correct.
18,000
21,470
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