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Grand Department Store, Incorporated, uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October: Beginning inventory: At cost At retail Purchases (exclusive of freight and returns): At cost At retail Freight-in Purchase returns: At cost At retail Additional markups Markup cancellations. Markdowns (net) Normal spoilage and breakage Sales Sales returns. $ 12,000 22,000 100, 182 138,500 4,300 1,300 2,000 1,700 225 720 3,700 131,650 3,920 Required: 1. Using the conventional retail ending inventory method, prepare a schedule computing estimated lower of cost or market (LCM) inventory and cost of goods sold for October. Note: Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.24) and round your final answers to the nearest whole dollar.

Grand Department Store, Incorporated, uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October: Beginning inventory: At cost At retail Purchases (exclusive of freight and returns): At cost At retail Freight-in Purchase returns: At cost At retail Additional markups Markup cancellations. Markdowns (net) Normal spoilage and breakage Sales Sales returns. $ 12,000 22,000 100, 182 138,500 4,300 1,300 2,000 1,700 225 720 3,700 131,650 3,920 Required: 1. Using the conventional retail ending inventory method, prepare a schedule computing estimated lower of cost or market (LCM) inventory and cost of goods sold for October. Note: Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.24) and round your final answers to the nearest whole dollar.

FINANCIAL ACCOUNTING
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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Grand Department Store, Incorporated, uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October: Beginning inventory: At cost At retail Purchases (exclusive of freight and returns): At cost At retail Freight-in Purchase returns: At cost At retail Additional markups Markup cancellations Markdowns (net) Normal spoilage and breakage Sales Sales returns $ 12,000 22,000 100,182 138,500 4,300 1,300 2,000 1,700 225 720 3,700 131,650 3,920 Required: 1. Using the conventional retail ending inventory method, prepare a schedule computing estimated lower of cost or market (LCM) inventory and cost of goods sold for October. Note: Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.24) and round your final answers to the nearest whole dollar.
Transcribed Image Text:Grand Department Store, Incorporated, uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October: Beginning inventory: At cost At retail Purchases (exclusive of freight and returns): At cost At retail Freight-in Purchase returns: At cost At retail Additional markups Markup cancellations Markdowns (net) Normal spoilage and breakage Sales Sales returns $ 12,000 22,000 100,182 138,500 4,300 1,300 2,000 1,700 225 720 3,700 131,650 3,920 Required: 1. Using the conventional retail ending inventory method, prepare a schedule computing estimated lower of cost or market (LCM) inventory and cost of goods sold for October. Note: Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.24) and round your final answers to the nearest whole dollar.
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