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 for the three months ending March 31, 2021: Cost Retail Beginning inventory $ 170,000 $ 281,000 Net purchases 602,000 840,000 Net markups 26,000 Net markdowns 6,000 Net sales 815,000 Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold for the three months ending March 31, 2021, using the information provided. Assume stable retail prices during the period. (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.).
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 for the three months ending March 31, 2021: Cost Retail Beginning inventory $ 170,000 $ 281,000 Net purchases 602,000 840,000 Net markups 26,000 Net markdowns 6,000 Net sales 815,000 Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold for the three months ending March 31, 2021, using the information provided. Assume stable retail prices during the period. (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.).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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 for the
three months ending March 31, 2021: Cost
Retail Beginning inventory $ 170,000 $
281,000 Net purchases 602,000 840,000
Net markups 26,000 Net markdowns 6,000
Net sales 815,000 Required: Complete the
table below to estimate the LIFO cost of
ending inventory and cost of goods sold
for the three months ending March 31,
2021, using the information provided.
Assume stable retail prices during the
period. (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.).
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