Pomona Co. uses the conventional retail method to estimate endinginventories. The following data has been summarized for year endedDecember 31, 2023:Beg InvPurchasesNet MarkupsNet MarkdownsNormal SpoilageEmployee DiscountsNet SalesBeg InvEstimated the ending inventory and cost of goods sold applying theconventional retail method. Assume that sales are recorded net of employeediscounts.1. Round ratio calculation to 2 decimal places (i.e., 0.1234 should be enteredas 12.34%.). For all others, round up to a whole number.2. Enter amounts to be deducted with a minus sign.3. Do not put "$" in your answers.4. When nothing needs to be added/subtracted, please put 0 in the blank.CostPuasesNet MarkupsCost$80,000$166,000Goods AFSRetail$126,000$300,000$9,100$8,200$13,200$15,600$238,000Retail Beg InvPurchasesNet MarkupsGoods AFSCost to Retail %Net MarkdownsNormal SpoilageSalesEstimated EndingInventory at RetailEstimated EndingInventory at CostEstimated COGSCost%Retail

Cost to Retail Ratio Cost of Goods Available for sale Retail value of Goods Available…

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Estimated the ending inventory and cost of goods sold applying the conventional retail method. Assume that sales are recorded net of employee discounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A: Definition:

Question

Pomona Co. uses the conventional retail method to estimate ending
inventories. The following data has been summarized for year ended
December 31, 2023:
Beg Inv
Purchases
Net Markups
Net Markdowns
Normal Spoilage
Employee Discounts
Net Sales
Beg Inv
Estimated the ending inventory and cost of goods sold applying the
conventional retail method. Assume that sales are recorded net of employee
discounts.
1. Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered
as 12.34%.). For all others, round up to a whole number.
2. Enter amounts to be deducted with a minus sign.
3. Do not put "$" in your answers.
4. When nothing needs to be added/subtracted, please put 0 in the blank.
Cost
Pu
ases
Net Markups
Cost
$80,000
$166,000
Goods AFS
Retail
$126,000
$300,000
$9,100
$8,200
$13,200
$15,600
$238,000
Retail

Beg Inv
Purchases
Net Markups
Goods AFS
Cost to Retail %
Net Markdowns
Normal Spoilage
Sales
Estimated Ending
Inventory at Retail
Estimated Ending
Inventory at Cost
Estimated COGS
Cost
%
Retail

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