Plank Co. uses the retail inventory method. The following information is available for the current year. Beginning inventory Purchases Freight-in Employee discounts Net markups Net markdowns Sales revenue $383,600 $379,680 $392,000 Cost $312,000 $409,920 1,180,000 20,000 Retail $488,000 The approximate cost of the ending inventory by the conventional retail method is: 1,660,000 8,000 60,000 80,000 1,560,000

Plank Co. uses the retail inventory method. The following information is available for the current year. Beginning inventory Purchases Freight-in Employee discounts Net markups Net markdowns Sales revenue $383,600 $379,680 $392,000 Cost $312,000 $409,920 1,180,000 20,000 Retail $488,000 The approximate cost of the ending inventory by the conventional retail method is: 1,660,000 8,000 60,000 80,000 1,560,000

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 for the quarter ending September 30, 2021: Cost Retail Beginning inventory $ 460,000 $ 590,000 Net purchases 940,000 1,370,000 Freight-in 52,700 Net markups 64,000 Net markdowns 34,000 Net sales 1,280,000 Estimate ending inventory and cost of goods sold using the conventional method.
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