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, 2021: Retail 525,000 1,300, 000 Cost Beginning inventory Net purchases Freight-in Net markups Net markdowns $390, 000 $ 900,000 27,050 57,000 27,000 1,245,000 Net sales Estimate ending inventory and cost of goods sold (LIFO). (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)) Cost-to-Retail Ratio Cost Retail Beginning inventory 390,000 $ 525,000 Plus: Net purchases 900,000 1,300,000 Freight-in 27,050 Net markups 57,000 Less: Net markdowns 27,000 Goods available for sale (excluding beg. Inventory) 927,050 1,330,000 Goods available for sale (including beg. Inventory) 1,317.050 1,855,000 Cost-to-retail percentage 71.00% Less: Net sales 1,245,000 Estimated ending inventory at retail $ 610,000 Estimated ending inventory at cost Estimated cost of goods sold $ 1,317,050

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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, 2021:
Retail
525,000
1,300, 000
Cost
Beginning inventory
Net purchases
Freight-in
Net markups
Net markdowns
$390, 000 $
900,000
27,050
57,000
27,000
1,245,000
Net sales
Estimate ending inventory and cost of goods sold (LIFO). (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered
as 12.34%.))
Cost-to-Retail
Ratio
Cost
Retail
Beginning inventory
390,000 $
525,000
Plus: Net purchases
900,000
1,300,000
Freight-in
27,050
Net markups
57,000
Less: Net markdowns
27,000
Goods available for sale (excluding beg. Inventory)
927,050
1,330,000
Goods available for sale (including beg. Inventory)
1,317.050
1,855,000
Cost-to-retail percentage
71.00%
Less: Net sales
1,245,000
Estimated ending inventory at retail
$
610,000
Estimated ending inventory at cost
Estimated cost of goods sold
$
1,317,050
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, 2021: Retail 525,000 1,300, 000 Cost Beginning inventory Net purchases Freight-in Net markups Net markdowns $390, 000 $ 900,000 27,050 57,000 27,000 1,245,000 Net sales Estimate ending inventory and cost of goods sold (LIFO). (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)) Cost-to-Retail Ratio Cost Retail Beginning inventory 390,000 $ 525,000 Plus: Net purchases 900,000 1,300,000 Freight-in 27,050 Net markups 57,000 Less: Net markdowns 27,000 Goods available for sale (excluding beg. Inventory) 927,050 1,330,000 Goods available for sale (including beg. Inventory) 1,317.050 1,855,000 Cost-to-retail percentage 71.00% Less: Net sales 1,245,000 Estimated ending inventory at retail $ 610,000 Estimated ending inventory at cost Estimated cost of goods sold $ 1,317,050
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