Compute estimated ending inventory and cost of goods sold for Marcn applying the conventional ret calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sig und rati Cost-to-Retail Ratio Cost Retail Beginning inventory Purchases 53,000 $ 220,000 14,068 (6,000) 73,000 413,000 Freight-in Purchase returns (8,500) Net markups 7,100 484,600 Net markdowns (4,800) Goods available for sale 281,068 479,800 Cost-to-retail percentage (conventional retail method) %

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method. (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.)
Cost-to-Retail
Ratio
Cost
Retail
Beginning inventory
$
53,000 $
73,000
Purchases
220,000
413,000
Freight-in
14,068
Purchase returns
Net markups
(6,000)
(8,500)
7,100
484,600
Net markdowns
(4,800)
Goods available for sale
281,068
479,800
Cost-to-retail percentage (conventional retail method)
%
Normal breakage
Net sales:
Sales
(293,000)
Employee discounts
(1,500)
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Transcribed Image Text:1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method. (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.) Cost-to-Retail Ratio Cost Retail Beginning inventory $ 53,000 $ 73,000 Purchases 220,000 413,000 Freight-in 14,068 Purchase returns Net markups (6,000) (8,500) 7,100 484,600 Net markdowns (4,800) Goods available for sale 281,068 479,800 Cost-to-retail percentage (conventional retail method) % Normal breakage Net sales: Sales (293,000) Employee discounts (1,500) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold
LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial
statements. The following data pertain to one of its largest departments for the month of March 2021:
Cost
Retail
Beginning inventory
Purchases
$ 53,000 $ 73,000
Freight-in
Purchase returns
220,000 413,000
14,068
6,000
8,500
Net markups
Net markdowns
7,100
4,800
Normal breakage
8,500
293,000
1,500
Net sales
Employee discounts
Sales are recorded net of employee discounts.
Transcribed Image Text:LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March 2021: Cost Retail Beginning inventory Purchases $ 53,000 $ 73,000 Freight-in Purchase returns 220,000 413,000 14,068 6,000 8,500 Net markups Net markdowns 7,100 4,800 Normal breakage 8,500 293,000 1,500 Net sales Employee discounts Sales are recorded net of employee discounts.
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