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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 Cost $ 450,000 935,000 72,800 Retail $ 580,000 1,360,000 Net markups Net markdowns Net sales 63,000 33,000 1,275,000 Estimate ending inventory and cost of goods sold (average cost). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)

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 Cost $ 450,000 935,000 72,800 Retail $ 580,000 1,360,000 Net markups Net markdowns Net sales 63,000 33,000 1,275,000 Estimate ending inventory and cost of goods sold (average cost). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)

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 at the end of the year: Retail $ 580,000 1,360,000 Beginning inventory Net purchases Freight-in Cost $ 450,000 935,000 72,800 33,000 1,275,000 63,000 Net markups Net markdowns Net sales Estimate ending inventory and cost of goods sold (average cost). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Beginning inventory Plus: Net purchases Freight-in 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 Cost Retail Cost-to-Retail Ratio 450,000 $ 935,000 580,000 1,360,000 72,800 63,000 (33,000) 1,457,800 1,970,000 (1,275,000) 695,000
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: Retail $ 580,000 1,360,000 Beginning inventory Net purchases Freight-in Cost $ 450,000 935,000 72,800 33,000 1,275,000 63,000 Net markups Net markdowns Net sales Estimate ending inventory and cost of goods sold (average cost). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Beginning inventory Plus: Net purchases Freight-in 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 Cost Retail Cost-to-Retail Ratio 450,000 $ 935,000 580,000 1,360,000 72,800 63,000 (33,000) 1,457,800 1,970,000 (1,275,000) 695,000
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