Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sol The following data are available for the quarter ending September 30, 2018: 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 Estimate ending inventory and cost of goods sold (average cost). Cost-to-retail percentage Cost Retail $350,000 $ 505,000 880,000 1,260,000 44,450 Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost S 53,000 23,000 1,225,000 Cost 350,000 $ 880,000 44,450 1,274,450 S (A Retail 505,000 1,260,000 53,000 23,000 1,795,000 1,225,000 570,000 Cost-to-Retail Ratio
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sol The following data are available for the quarter ending September 30, 2018: 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 Estimate ending inventory and cost of goods sold (average cost). Cost-to-retail percentage Cost Retail $350,000 $ 505,000 880,000 1,260,000 44,450 Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost S 53,000 23,000 1,225,000 Cost 350,000 $ 880,000 44,450 1,274,450 S (A Retail 505,000 1,260,000 53,000 23,000 1,795,000 1,225,000 570,000 Cost-to-Retail Ratio
Chapter1: Financial Statements And Business Decisions
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
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 for the quarter ending September 30, 2018:
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
Estimate ending inventory and cost of goods sold (average cost).
Cost-to-retail percentage
Cost
Retail
$350,000
$ 505,000
880,000 1,260,000
44,450
Less: Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$
53,000
23,000
1,225,000
Cost
350,000 $
880,000
44,450
1,274,450
$ 1,274,450
$
Retail
505,000
1,260,000
53,000
23,000
1,795,000
1,225,000
570,000
Cost-to-Retail
Ratio
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