Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available: Beginning inventory Net purchases Net markups Net markdowns Net sales. Cost $ 320,000 707,000 Retail $ 382,000 995,000 23,000 8,000 961,000
Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available: Beginning inventory Net purchases Net markups Net markdowns Net sales. Cost $ 320,000 707,000 Retail $ 382,000 995,000 23,000 8,000 961,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
6
![Exercise 9-15 (Algo) Retail inventory method; LIFO [LO9-3]
Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail
inventory method to estimate ending inventory and cost of goods sold. The following data are available:
Beginning inventory
Net purchases
Net markups
Net markdowns
Net sales.
Cost
$ 320,000
707,000
Required:
Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold using the information provided.
Assume stable retail prices during the period.
Beginning inventory
Net purchases
Net markups
Net markdowns
Retail
$ 382,000
995,000
23,000
8,000
961,000
Note: Round ratio calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34%. ). Enter amounts to be deducted with a
minus sign.
Goods available for sale (excluding beginning inventory)
Goods available for sale (including beginning inventory)
Cost-to-retail percentage (beginning)
Cost-to-retail percentage (current)
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$
Cost
Retail
320,000 $ 382,000
Cost-to-Retail
Ratio
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e51528a-98b5-4487-833d-f12f3cae98a2%2F3d74ab90-6286-4235-af3c-eaf914ad3ee7%2Fkplqgkg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-15 (Algo) Retail inventory method; LIFO [LO9-3]
Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail
inventory method to estimate ending inventory and cost of goods sold. The following data are available:
Beginning inventory
Net purchases
Net markups
Net markdowns
Net sales.
Cost
$ 320,000
707,000
Required:
Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold using the information provided.
Assume stable retail prices during the period.
Beginning inventory
Net purchases
Net markups
Net markdowns
Retail
$ 382,000
995,000
23,000
8,000
961,000
Note: Round ratio calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34%. ). Enter amounts to be deducted with a
minus sign.
Goods available for sale (excluding beginning inventory)
Goods available for sale (including beginning inventory)
Cost-to-retail percentage (beginning)
Cost-to-retail percentage (current)
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$
Cost
Retail
320,000 $ 382,000
Cost-to-Retail
Ratio
%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education