Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold The following data are available at the end of the year. Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Beginning inventory Plus: Net purchases Freight-in Cost $ 400,000 905,000 45,000 Estimate ending Inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (1.e., 0.1234 should be entered as 12.34%.) Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning Inventory) Cost-to-retail percentage Less Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 535,000 1,310,000 58,000 28,000 1,250,000 $ Cost 400,000 $ 905,000 45,000 950,000 1,350,000 S Retail 535,000 1,310,000 58,000 (28,000) 1,340,000 1,875,000 (1,250,000) 625,000 Cost to Retail Ratio
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold The following data are available at the end of the year. Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Beginning inventory Plus: Net purchases Freight-in Cost $ 400,000 905,000 45,000 Estimate ending Inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (1.e., 0.1234 should be entered as 12.34%.) Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning Inventory) Cost-to-retail percentage Less Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 535,000 1,310,000 58,000 28,000 1,250,000 $ Cost 400,000 $ 905,000 45,000 950,000 1,350,000 S Retail 535,000 1,310,000 58,000 (28,000) 1,340,000 1,875,000 (1,250,000) 625,000 Cost to Retail Ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikram
![Kiddle World uses a periodic inventory system and the retail inventory method to estimate ending Inventory and cost of goods sold.
The following data are available at the end of the year
Beginning inventory
Net purchases
Freight-in
Net markups
Net markdowns
Net sales
Cost
$ 400,000
905,000
45,000
Beginning inventory
Plus: Net purchases
Freight-in
Retail
$ 535,000
1,310,000
Estimate ending Inventory and cost of goods sold (LIFO).
Note: Round ratio calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34%.)
Net markups
Less: Net markdowns.
Goods available for sale (excluding beginning Inventory)
Goods available for sale (including beginning Inventory)
Cost-to-retail percentage
Less Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
58,000
28,000
1,250,000
$
Cost
400,000 $
905,000
45,000
950,000
1,350,000
$
Retail
535,000
1,310,000
58,000
(28,000)
1,340,000
1,875,000
(1,250,000)
625,000
Cost to Retail
Ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54fafca2-4b19-42e1-b57a-4faba095a1ec%2F29d0925f-0f90-4bb6-a363-51679a852ba6%2Fz91yfsu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Kiddle World uses a periodic inventory system and the retail inventory method to estimate ending Inventory and cost of goods sold.
The following data are available at the end of the year
Beginning inventory
Net purchases
Freight-in
Net markups
Net markdowns
Net sales
Cost
$ 400,000
905,000
45,000
Beginning inventory
Plus: Net purchases
Freight-in
Retail
$ 535,000
1,310,000
Estimate ending Inventory and cost of goods sold (LIFO).
Note: Round ratio calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34%.)
Net markups
Less: Net markdowns.
Goods available for sale (excluding beginning Inventory)
Goods available for sale (including beginning Inventory)
Cost-to-retail percentage
Less Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
58,000
28,000
1,250,000
$
Cost
400,000 $
905,000
45,000
950,000
1,350,000
$
Retail
535,000
1,310,000
58,000
(28,000)
1,340,000
1,875,000
(1,250,000)
625,000
Cost to Retail
Ratio
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