Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods 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 Net markups Less: Net markdowns Goods available for sale Cost-to-retail percentage Less: Net sales Cost $ 400,000 905,000 45,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Estimate ending inventory and cost of goods sold (average cost). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Retail $ 535,000 1,310,000 $ 58,000 28,000 1,250,000 Cost 400,000 $ 905,000 45,000 1,350,000 $ Retail 535,000 1,310,000 58,000 (28,000) 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 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 Net markups Less: Net markdowns Goods available for sale Cost-to-retail percentage Less: Net sales Cost $ 400,000 905,000 45,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Estimate ending inventory and cost of goods sold (average cost). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Retail $ 535,000 1,310,000 $ 58,000 28,000 1,250,000 Cost 400,000 $ 905,000 45,000 1,350,000 $ Retail 535,000 1,310,000 58,000 (28,000) 1,875,000 (1,250,000) 625,000 Cost-to-Retail Ratio
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 3PEA: Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual...
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