Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail nventory method to estimate ending inventory and cost of goods sold. The following data are available for the three months ending March 31, 2021 Beginning inventory Net purchases Net markups Net markdowns Net sales Beginning inventory Net purchases 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.) Net markups Cost $180,000 630,000 Net markdowns Goods available for sale (excluding beg inventory) Goods available for sale (including beg inventory) Cost-to-retail percentage (beginning) Cost-to-retail percentage (current) Net sales Estimated ending inventory at retail Retail $282,000 865,000 13,000 3,000 840,000 $ Cost 180,000 $ 630,000 0 0 630,000 810,000 ARE $ Retail 282,000 865,000 13,000 3,000 875,000 1,157,000 840,000 317,000 Cost-to-Retail Ratio 63.82 % 72.00 %

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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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:
Beginning inventory.
Net purchases
Net markups
Net markdowns
Net sales
Beginning inventory
Net purchases
Net markups
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.)
Cost
$180,000
630,000
Net markdowns
Goods available for sale (excluding beg. inventory)
Goods available for sale (including beg inventory)
Cost-to-retail percentage (beginning)
Cost-to-retail percentage (current)
sales
Estimated ending inventory at retail
Retail
$282,000
865,000
13,000
3,000
840,000
$
Cost
180,000 $
630,000
0
0
630,000
810,000
$
Retail
282,000
865,000
13,000
3,000
875,000
1,157,000
840,000
317,000
Cost-to-Retail
Ratio
63.82 %
72.00 %
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: Beginning inventory. Net purchases Net markups Net markdowns Net sales Beginning inventory Net purchases Net markups 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.) Cost $180,000 630,000 Net markdowns Goods available for sale (excluding beg. inventory) Goods available for sale (including beg inventory) Cost-to-retail percentage (beginning) Cost-to-retail percentage (current) sales Estimated ending inventory at retail Retail $282,000 865,000 13,000 3,000 840,000 $ Cost 180,000 $ 630,000 0 0 630,000 810,000 $ Retail 282,000 865,000 13,000 3,000 875,000 1,157,000 840,000 317,000 Cost-to-Retail Ratio 63.82 % 72.00 %
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