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Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $ 400,000 905,000 45,000 Retail $ 535,000 1,310,000 58,000 28,000 1,250,000 Estimate ending inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12

Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $ 400,000 905,000 45,000 Retail $ 535,000 1,310,000 58,000 28,000 1,250,000 Estimate ending inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Beginning inventory Net purchases Freight-in Net markups Cost $ 400,000 905,000 45,000 Retail $ 535,000 1,310,000 58,000 Net markdowns Net sales 28,000 1,250,000 Estimate ending inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Cost Retail Cost-to-Retail Ratio Beginning inventory Plus: Net purchases $ 400,000 $ 905,000 535,000 1,310,000 Freight-in Net markups 45,000 58,000 Less: Net markdowns (28,000) Goods available for sale (excluding beginning Inventory) 950,000 1,340,000 Goods available for sale (including beginning Inventory) Cost-to-retail percentage Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 1,350,000 1,875,000 (1,250,000) $ 625,000 < Prev 14 of 17 Next
Transcribed Image Text:Beginning inventory Net purchases Freight-in Net markups Cost $ 400,000 905,000 45,000 Retail $ 535,000 1,310,000 58,000 Net markdowns Net sales 28,000 1,250,000 Estimate ending inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Cost Retail Cost-to-Retail Ratio Beginning inventory Plus: Net purchases $ 400,000 $ 905,000 535,000 1,310,000 Freight-in Net markups 45,000 58,000 Less: Net markdowns (28,000) Goods available for sale (excluding beginning Inventory) 950,000 1,340,000 Goods available for sale (including beginning Inventory) Cost-to-retail percentage Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 1,350,000 1,875,000 (1,250,000) $ 625,000 < Prev 14 of 17 Next
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