Required:1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with aminus sign.Beginning inventoryPurchasesFreight-inPurchase returnsNet markupsNet markdownsGoods available for saleCost-to-retail percentage (conventional retail method)Normal breakageNet sales:SalesEmployee discountsEstimated ending inventory at retailEstimated ending inventory at costEstimated cost of goods sold$Cost54,000 $221,00018,358293,358$Retail74,000414,0007,200495,200495,200495,200Cost-to-RetailRatio% Required informationLeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financialstatements. The following data pertain to one of its largest departments for the month of March:Cost$ 54,000221,00018,3586,500Retail$ 74,000414,000Beginning inventoryPurchasesFreight-inPurchase returnsNet markupsNet markdownsNormal breakageNet salesEmployee discountsSales are recorded net of employee discounts.9,0007,2004,9009,000294,0001,600

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Description: Required:1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with

The cost to retail percentage or the cost to retail ratio, determines the portion of the cost of the…

Business

Accounting

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: Cost $ 54,000 221,000 18,358 6,500 Retail $ 74,000 414,000 Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal breakage Net sales Employee discounts Sales are recorded net of employee discounts. 9,000 7,200 4,900 9,000 294,000 1,600

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: Cost $ 54,000 221,000 18,358 6,500 Retail $ 74,000 414,000 Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal breakage Net sales Employee discounts Sales are recorded net of employee discounts. 9,000 7,200 4,900 9,000 294,000 1,600

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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