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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 Purchases Freight-in Net markups Net markdowns Goods available for sale Cost-to-retail percentage Net sales Cost $ 220,000 588,000 11,000 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. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 283,000 864,000 23,000 4,300 830,000 $ Cost 220,000 $ 220,000 Retail 283,000 283,000 283,000 283,000 Cost-to-Retail Ratio %

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 Purchases Freight-in Net markups Net markdowns Goods available for sale Cost-to-retail percentage Net sales Cost $ 220,000 588,000 11,000 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. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 283,000 864,000 23,000 4,300 830,000 $ Cost 220,000 $ 220,000 Retail 283,000 283,000 283,000 283,000 Cost-to-Retail Ratio %

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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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 Purchases Freight-in Net markups Net markdowns Goods available for sale Cost-to-retail percentage Net sales Cost $ 220,000 588,000 11,000 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. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 283,000 864,000 23,000 4,300 830,000 $ Cost 220,000 $ 220,000 Retail 283,000 283,000 283,000 283,000 Cost-to-Retail Ratio %
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 Purchases Freight-in Net markups Net markdowns Goods available for sale Cost-to-retail percentage Net sales Cost $ 220,000 588,000 11,000 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. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 283,000 864,000 23,000 4,300 830,000 $ Cost 220,000 $ 220,000 Retail 283,000 283,000 283,000 283,000 Cost-to-Retail Ratio %
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