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Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Retail $ 282,000 856,000 Beginning inventory Purchases Freight-in Net markups Net markdowns Net sales Cost $ 210,000 650,000 10,000 22,000 4,200 820,000 Required: Determine ending inventory and cost of goods sold by 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.

Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Retail $ 282,000 856,000 Beginning inventory Purchases Freight-in Net markups Net markdowns Net sales Cost $ 210,000 650,000 10,000 22,000 4,200 820,000 Required: Determine ending inventory and cost of goods sold by 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.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 13E: Retail Inventory Method The following information relates to the retail inventory method used by...
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Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Beginning inventory Purchases Freight-in Net markups Net markdowns Net sales Beginning inventory Cost $ 210,000 650,000 10,000 Required: Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided. Purchases Freight-in Net markups 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 Net sales Retail $ 282,000 856,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 22,000 4,200 820,000 $ X Answer is not complete. Cost 210,000 $ 650,000 10,000 0 870,000 251,850 Retail 282,000 856,000 0 22,000 1,160,000 4,200 1,155,800 $ 1,155,800 Cost-to-Retail Ratio 75.00 % Screenshot
Transcribed Image Text:Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Beginning inventory Purchases Freight-in Net markups Net markdowns Net sales Beginning inventory Cost $ 210,000 650,000 10,000 Required: Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided. Purchases Freight-in Net markups 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 Net sales Retail $ 282,000 856,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 22,000 4,200 820,000 $ X Answer is not complete. Cost 210,000 $ 650,000 10,000 0 870,000 251,850 Retail 282,000 856,000 0 22,000 1,160,000 4,200 1,155,800 $ 1,155,800 Cost-to-Retail Ratio 75.00 % Screenshot
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