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 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 $420,000 $ 555,000 915,000 1,330,000 24,650 Less Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 60,000 30,000 1,260,000 Cost Retail Cost to Retail Ratio
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 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 $420,000 $ 555,000 915,000 1,330,000 24,650 Less Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 60,000 30,000 1,260,000 Cost Retail Cost to Retail Ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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sanjay
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
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
$420,000 $ 555,000
915,000 1,330,000
24,650
Less Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
60,000
30,000
1,260,000
Cost
Retail
Cost to Retail
Ratio
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