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 Cost $ 340,000 873,000 26,000 Beginning inventory Plus: Net purchases Freight-in 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 $ 490,000 1,250,000 Estimate ending inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) 52,000 22,000 1,220,000 $ Cost 340,000 $ 873,000 26,000 899,000 1,239,000 $ Retail 490,000 1,250,000 52,000 (22,000) 1,280,000 1,770,000 (1,220,000) 550,000 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 Cost $ 340,000 873,000 26,000 Beginning inventory Plus: Net purchases Freight-in 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 $ 490,000 1,250,000 Estimate ending inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) 52,000 22,000 1,220,000 $ Cost 340,000 $ 873,000 26,000 899,000 1,239,000 $ Retail 490,000 1,250,000 52,000 (22,000) 1,280,000 1,770,000 (1,220,000) 550,000 Cost-to-Retail Ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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
Cost
$ 340,000
873,000
26,000
Beginning inventory
Plus: Net purchases
Freight-in
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
$ 490,000
1,250,000
Estimate ending inventory and cost of goods sold (LIFO).
Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)
52,000
22,000
1,220,000
$
Cost
340,000 $
873,000
26,000
899,000
1,239,000
$
Retail
490,000
1,250,000
52,000
(22,000)
1,280,000
1,770,000
(1,220,000)
550,000
Cost-to-Retail
Ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e43624e-c15e-4c98-8a05-7000d5fb32fa%2F556b790a-b232-427b-a4a7-e419cec912ae%2F1dtg63_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Cost
$ 340,000
873,000
26,000
Beginning inventory
Plus: Net purchases
Freight-in
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
$ 490,000
1,250,000
Estimate ending inventory and cost of goods sold (LIFO).
Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)
52,000
22,000
1,220,000
$
Cost
340,000 $
873,000
26,000
899,000
1,239,000
$
Retail
490,000
1,250,000
52,000
(22,000)
1,280,000
1,770,000
(1,220,000)
550,000
Cost-to-Retail
Ratio
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