! 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: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Cost $ 43,000 210,000 17,322 5,500 Retail $ 63,000 403,000 Cost-to-retail percentage 7,500 6,100 3,800 7,500 283,000 2,100 Normal breakage Net sales Employee discounts Sales are recorded net of employee discounts. 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%).
! 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: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Cost $ 43,000 210,000 17,322 5,500 Retail $ 63,000 403,000 Cost-to-retail percentage 7,500 6,100 3,800 7,500 283,000 2,100 Normal breakage Net sales Employee discounts Sales are recorded net of employee discounts. 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%).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Beginning inventory
Purchases
Freight-in
Purchase returns
Net markups
Net markdowns
Cost
$ 43,000
210,000
17,322
5,500
Retail
$ 63,000
403,000
Cost-to-retail percentage
Normal breakage
Net sales
Employee discounts
Sales are recorded net of employee discounts.
7,500
6,100
3,800
7,500
283,000
2,100
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%).
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