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 $ 200,000 712,000 Retail $ 350,000 879,000 16,000 5,000 849,000 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.) Note: Round ratio calculation to 2 decimal places (.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: Beginning inventory Net purchases Net markups Net markdowns Net sales Cost $ 200,000 712,000 Retail $ 350,000 879,000 16,000 5,000 849,000 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.) Note: Round ratio calculation to 2 decimal places (.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
Problem 1Q
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![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
$ 200,000
712,000
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.
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.
Retail
$ 350,000
879,000
16,000
5,000
849,000
Beginning inventory
Net purchases
Netmarkups
Net markdowns
Goods available for sale (excluding beginning inventory)
Goods available for sale (including beginning inventory)
Cost-to-retail percentage (beginning)
Cost-to-retail percentage (current)
Not sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$
Cost
200,000 $
Retail
350,000
Cost-to-Retall
Ratio
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a81675d-c5da-46f4-861c-b9d7429bd100%2Fd7b4eb79-c21a-4455-8da4-78bbaf356902%2Fqtlq4pm_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
$ 200,000
712,000
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.
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.
Retail
$ 350,000
879,000
16,000
5,000
849,000
Beginning inventory
Net purchases
Netmarkups
Net markdowns
Goods available for sale (excluding beginning inventory)
Goods available for sale (including beginning inventory)
Cost-to-retail percentage (beginning)
Cost-to-retail percentage (current)
Not sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$
Cost
200,000 $
Retail
350,000
Cost-to-Retall
Ratio
%
%
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