Required information 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 2021: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal breakage Net sales Employee discounts Cost Retail $50,000 $70,000 217,000 410,000 10,986 4,500 Sales are recorded net of employee discounts. Cost-to-retail percentage 7,000 6,800 4,500 7,000 290,000 2,800 2. Recompute the cost-to-retail percentage using the average cost method. (Round your percentage answer to 2 decimal places 0.1234 should be entered as 12.34%).) %
Required information 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 2021: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal breakage Net sales Employee discounts Cost Retail $50,000 $70,000 217,000 410,000 10,986 4,500 Sales are recorded net of employee discounts. Cost-to-retail percentage 7,000 6,800 4,500 7,000 290,000 2,800 2. Recompute the cost-to-retail percentage using the average cost method. (Round your percentage answer to 2 decimal places 0.1234 should be entered as 12.34%).) %
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 5PA
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Required information
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 2021:
Beginning inventory
Purchases
Freight-in
Purchase returns
Net markups
Net markdowns
Normal breakage
Net sales.
Employee discounts
Cost
Retail
$50,000 $ 70,000
217,000 410,000
10,986
4,500
Cost-to-retail percentage
7,000
6,800
4,500
7,000
Sales are recorded net of employee discounts.
290,000
2,800
2. Recompute the cost-to-retail percentage using the average cost method. (Round your percentage answer to 2 decimal places (i.e.,
0.1234 should be entered as 12.34%).)
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01074652-25fb-4a10-a179-5df826ed6812%2F006c7645-418b-4131-8e24-d9fae51a1f26%2Fea9hjc_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
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 2021:
Beginning inventory
Purchases
Freight-in
Purchase returns
Net markups
Net markdowns
Normal breakage
Net sales.
Employee discounts
Cost
Retail
$50,000 $ 70,000
217,000 410,000
10,986
4,500
Cost-to-retail percentage
7,000
6,800
4,500
7,000
Sales are recorded net of employee discounts.
290,000
2,800
2. Recompute the cost-to-retail percentage using the average cost method. (Round your percentage answer to 2 decimal places (i.e.,
0.1234 should be entered as 12.34%).)
%
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