Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory I cost of goods sold. The following data are available for the month of October: eginning inventory et purchases et markups et markdowns et sales Cost $ 47,000 10,480 Retail $ 62,000 32,800 2,400 1,400 44,000 quired: mplete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the rmation provided. te: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be Hucted with a minus sign.
Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory I cost of goods sold. The following data are available for the month of October: eginning inventory et purchases et markups et markdowns et sales Cost $ 47,000 10,480 Retail $ 62,000 32,800 2,400 1,400 44,000 quired: mplete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the rmation provided. te: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be Hucted with a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:San Lorenzo General Store 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 month of October:
Beginning inventory
Net purchases
Net markups
Net markdowns
Net sales
Required:
Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the
information provided.
Beginning inventory
Net purchases
Net markups
Net markdowns
Cost
$ 47,000
10,480
Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be
deducted with a minus sign.
Goods available for sale
Cost-to-retail percentage
Net sales
Retail
$ 62,000
32,800
2,400
1,400
44,000
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$
Cost
47,000 $
Retail
62,000
Cost-to-Retail
Ratio
%
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