Required information Exercise 9-17 (Algo) Conventional and average cost retail methods; employee discounts [LO9-3, 9-4] LeMay Department Store uses the retail Inventory method to estimate ending Inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March beginning inventory Purchases Freight-in Purchase returns Net markups Netmarkdowns Cost $ 42,000 200,000 13,200 5,000 Co to retail percentage Betall $ 62,000 400,000 Normal breakage et sales teployee discounts Sales are recorded net of employee discounts. 50.70 7,000 6,000 3,700 7,000 202,000 2,000 Exercise 9-17 (Algo) Part 2 2. Recompute the cost-to-retall percentage using the average cost method. Note: Round your percentage answer to 2 decimal places (l.e., 0.1234 should be entered as 12.34%).
Required information Exercise 9-17 (Algo) Conventional and average cost retail methods; employee discounts [LO9-3, 9-4] LeMay Department Store uses the retail Inventory method to estimate ending Inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March beginning inventory Purchases Freight-in Purchase returns Net markups Netmarkdowns Cost $ 42,000 200,000 13,200 5,000 Co to retail percentage Betall $ 62,000 400,000 Normal breakage et sales teployee discounts Sales are recorded net of employee discounts. 50.70 7,000 6,000 3,700 7,000 202,000 2,000 Exercise 9-17 (Algo) Part 2 2. Recompute the cost-to-retall percentage using the average cost method. Note: Round your percentage answer to 2 decimal places (l.e., 0.1234 should be entered as 12.34%).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Required Information
#### Exercise 9-17 (Algo) Conventional and Average Cost Retail Methods; Employee Discounts [LO9-3, 9-4]
LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March:
| | Cost | Retail |
|--------------------------|-------|---------|
| Beginning Inventory | $42,000 | $60,000 |
| Purchases | $153,000 | $240,000 |
| Freight-In | $3,000 | |
| Purchase Returns | $15,000 | $20,000 |
| Net Markups | | $8,000 |
| Net Markdowns | | $7,000 |
| Sales | | $279,000 |
| Employee Discounts | | $2,000 |
**Note:** Sales are recorded net of employee discounts.
### Exercise 9-17 (Algo) Part 2
2. **Recompute the cost-to-retail percentage using the average cost method.**
**Note:** Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34%).
- **Cost-to-Retail Percentage**: 56.70%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9855cb7a-5db1-4294-9de9-4e629d51bb96%2F70b93a07-ebb3-449f-82f1-772a46572ad0%2Frbaeb09_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Required Information
#### Exercise 9-17 (Algo) Conventional and Average Cost Retail Methods; Employee Discounts [LO9-3, 9-4]
LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March:
| | Cost | Retail |
|--------------------------|-------|---------|
| Beginning Inventory | $42,000 | $60,000 |
| Purchases | $153,000 | $240,000 |
| Freight-In | $3,000 | |
| Purchase Returns | $15,000 | $20,000 |
| Net Markups | | $8,000 |
| Net Markdowns | | $7,000 |
| Sales | | $279,000 |
| Employee Discounts | | $2,000 |
**Note:** Sales are recorded net of employee discounts.
### Exercise 9-17 (Algo) Part 2
2. **Recompute the cost-to-retail percentage using the average cost method.**
**Note:** Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34%).
- **Cost-to-Retail Percentage**: 56.70%
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