Exercise 9-14 (Algo) Conventional retail method [LO9-4] Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Cost Beginning inventory $ 340,000 Purchases 669,000 23,000 Freight-in Net markups Net markdowns Net sales Retail $295,000 960,000 35,000 5,500 950,000 Required: Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%). Enter amounts to be deducted with minus sign.
Exercise 9-14 (Algo) Conventional retail method [LO9-4] Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Cost Beginning inventory $ 340,000 Purchases 669,000 23,000 Freight-in Net markups Net markdowns Net sales Retail $295,000 960,000 35,000 5,500 950,000 Required: Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%). Enter amounts to be deducted with minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 9-14 (Algo) Conventional retail method [LO9-4]
Colonial Corporation uses the retail method to value its inventory. The following information is available for the year:
Cost
Beginning inventory $ 340,000
Purchases
669,000
23,000
Freight-in
Net markups
Net markdowns
Net sales
Beginning inventory
Required:
Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided.
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.
Purchases
Freight-in
Net markups
Net markdowns
Goods available for sale
Cost-to-retail percentage
Net sales
Retail
$295,000
960,000
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
35,000
5,500
950,000
Cost
$ 340,000 $
Retail
295,000
Cost-to-Retail
Ration
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F02ac176e-800f-4013-a129-b533fd3468a0%2F7e5f0553-8bfc-4a65-905b-626c62d75b67%2Fgcfis4m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-14 (Algo) Conventional retail method [LO9-4]
Colonial Corporation uses the retail method to value its inventory. The following information is available for the year:
Cost
Beginning inventory $ 340,000
Purchases
669,000
23,000
Freight-in
Net markups
Net markdowns
Net sales
Beginning inventory
Required:
Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided.
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.
Purchases
Freight-in
Net markups
Net markdowns
Goods available for sale
Cost-to-retail percentage
Net sales
Retail
$295,000
960,000
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
35,000
5,500
950,000
Cost
$ 340,000 $
Retail
295,000
Cost-to-Retail
Ration
%
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