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: Cost Retail Beginning inventory $ 320,000 $ 465,000 Net purchases 863,000 1,230,000 Freight-in 24,500 Net markups 50,000 Net markdowns 20,000 Net sales 1,210,000 please answer do not image format
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: Cost Retail Beginning inventory $ 320,000 $ 465,000 Net purchases 863,000 1,230,000 Freight-in 24,500 Net markups 50,000 Net markdowns 20,000 Net sales 1,210,000 please answer do not image format
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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:
Cost Retail
Beginning inventory $ 320,000 $ 465,000
Net purchases 863,000 1,230,000
Freight-in 24,500
Net markups 50,000
Net markdowns 20,000
Net sales 1,210,000
please answer do not image format
Cost Retail
Beginning inventory $ 320,000 $ 465,000
Net purchases 863,000 1,230,000
Freight-in 24,500
Net markups 50,000
Net markdowns 20,000
Net sales 1,210,000
please answer do not image format
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:
Cost
Beginning inventory $300,000
Net purchases
861,000
22,000
Freight-in
Net markups
Net markdowns
Net sales
Beginning inventory
Plus: Net purchases
Freight-in
Estimate ending inventory and cost of goods sold (average cost).
Net markups
Less: Net markdowns
Goods available for sale
Cost-to-retail percentage
Less: Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$
Retail
$450,000
1,210,000
Cost
48,000
18,000
1,200,000
0
0
$
Retail
0
0
Cost to Retail
Ratio
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