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Aztec Corporation uses a periodic inventory system and the retail inventory method to estimate sold. The following data are available for the month of September: Beginning inventory Net purchases Net markups Net markdowns Net sales Cost $ 27,000 13,500 Retail $ 45,000 ? 10,300 2,800 ? The company used the average cost flow method and estimated inventory at the end of Septer

Aztec Corporation uses a periodic inventory system and the retail inventory method to estimate sold. The following data are available for the month of September: Beginning inventory Net purchases Net markups Net markdowns Net sales Cost $ 27,000 13,500 Retail $ 45,000 ? 10,300 2,800 ? The company used the average cost flow method and estimated inventory at the end of Septer

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $ 27,000 13,500 Retail $ 45,000 Net purchases at retail Net sales ? 10,300 2,800 ? The company used the average cost flow method and estimated inventory at the end of September to be $22,556.25. 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.
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 $ 27,000 13,500 Retail $ 45,000 Net purchases at retail Net sales ? 10,300 2,800 ? The company used the average cost flow method and estimated inventory at the end of September to be $22,556.25. 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.
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