Required: 1. Prepare an estimate of the company's year-end Inventory by the retail method. (Round all calculations to two decimal places.)
Required: 1. Prepare an estimate of the company's year-end Inventory by the retail method. (Round all calculations to two decimal places.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 12E: Retail Inventory Method The following data were available from Hegge Department Stores records for...
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![The records of Earthly Goods provided the following Information for the year ended December 31, 2020.
At Cost
At Retail
$ 521, 35e $ 977,150
4,138, 245
January 1 beginning inventory
6,448, 700
129, 35e
5,595, 700
Purchases
Purchase returns
62, 800
Sales
Sales returns
49,600
Requlred:
1. Prepare an estimate of the company's year-end Inventory by the retall method. (Round all calculations to two decimal places.)
EARTHLY GOODS
Estimated Inventory
December 31, 2020
At Cost
At Retail
Goods available for sale:
Goods available for sale
Cost to retail ratio
Estimated ending inventory at cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ed0e7b2-8efa-4da4-a3ad-74d945a553a2%2F33b77ae7-c6ed-4937-a363-6b1780e15d33%2F3ko61k9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The records of Earthly Goods provided the following Information for the year ended December 31, 2020.
At Cost
At Retail
$ 521, 35e $ 977,150
4,138, 245
January 1 beginning inventory
6,448, 700
129, 35e
5,595, 700
Purchases
Purchase returns
62, 800
Sales
Sales returns
49,600
Requlred:
1. Prepare an estimate of the company's year-end Inventory by the retall method. (Round all calculations to two decimal places.)
EARTHLY GOODS
Estimated Inventory
December 31, 2020
At Cost
At Retail
Goods available for sale:
Goods available for sale
Cost to retail ratio
Estimated ending inventory at cost
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