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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

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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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
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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