Problem 9-8 Retail inventory method; conventional [LO9-4] Grand Department Store, Inc., uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2018: Inventory, October 1, 2018: At cost At retail Purchases (exclusive of freight and returns): At cost At retail Freight-in Purchase returns: At cost At retail Additional markups Markup cancellations Markdowns (net) Normal spoilage and breakage Sales $ 17,000 27,000 95,566 143,500 4,800 1,800 2,500 2,200 250 770 4,200 132,730 Required: 1. Using the conventional retail method, prepare a schedule computing estimated lower of cost or market (LCM) inventory for October 31, 2018. (Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and round your final answers to the nearest whole dollar.)
Problem 9-8 Retail inventory method; conventional [LO9-4] Grand Department Store, Inc., uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2018: Inventory, October 1, 2018: At cost At retail Purchases (exclusive of freight and returns): At cost At retail Freight-in Purchase returns: At cost At retail Additional markups Markup cancellations Markdowns (net) Normal spoilage and breakage Sales $ 17,000 27,000 95,566 143,500 4,800 1,800 2,500 2,200 250 770 4,200 132,730 Required: 1. Using the conventional retail method, prepare a schedule computing estimated lower of cost or market (LCM) inventory for October 31, 2018. (Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and round your final answers to the nearest whole dollar.)
Chapter1: Financial Statements And Business Decisions
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![Problem 9-8 Retail inventory method; conventional [LO9-4]
Grand Department Store, Inc., uses the retail inventory method to estimate ending inventory for its monthly financial statements. The
following data pertain to a single department for the month of October 2018:
Inventory, October 1, 2018:
At cost
At retail
Purchases (exclusive of freight and returns):
At cost
At retail
Freight-in
Purchase returns:
At cost
At retail.
Additional markups
Markup cancellations
Markdowns (net)
Normal spoilage and breakage
Sales
Beginning inventory
Cost-to-retail percentage
Goods available for sale
Estimated ending inventory at retail
Estimated ending inventory at cost
Cost
$
PLEASE DO THIS QUICKLY AND CORRECTLY
17,000
Retail
27,000
95,566
143,500
4,800
Required:
1. Using the conventional retail method, prepare a schedule computing estimated lower of cost or market (LCM) inventory for October
31, 2018. (Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and round your final
answers to the nearest whole dollar.)
1,800
2,500
2,200
250
770
4,200
132,730](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F902b6328-d5d0-4c0b-8290-aafdf8186a48%2Ffe807698-093d-4f5b-bdc2-8d1d603af686%2Fd9sj44b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 9-8 Retail inventory method; conventional [LO9-4]
Grand Department Store, Inc., uses the retail inventory method to estimate ending inventory for its monthly financial statements. The
following data pertain to a single department for the month of October 2018:
Inventory, October 1, 2018:
At cost
At retail
Purchases (exclusive of freight and returns):
At cost
At retail
Freight-in
Purchase returns:
At cost
At retail.
Additional markups
Markup cancellations
Markdowns (net)
Normal spoilage and breakage
Sales
Beginning inventory
Cost-to-retail percentage
Goods available for sale
Estimated ending inventory at retail
Estimated ending inventory at cost
Cost
$
PLEASE DO THIS QUICKLY AND CORRECTLY
17,000
Retail
27,000
95,566
143,500
4,800
Required:
1. Using the conventional retail method, prepare a schedule computing estimated lower of cost or market (LCM) inventory for October
31, 2018. (Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and round your final
answers to the nearest whole dollar.)
1,800
2,500
2,200
250
770
4,200
132,730
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