San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of October 2018: Beginning inventory Net purchases Net markups Net markdowns Net sales Beginning inventory Plus: Net purchases Net markups Less: Net markdowns Goods available for sale Cost-to-retail percentage Cost $35,000 19,120 Required: Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October. Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $50,000 31,600 1,200 800 32,000 Cost $ 35,000 $ 19,120 54,120 Retail 50,000 31,600 81,600 Cost-to-Retail Ratio

San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of October 2018: Beginning inventory Net purchases Net markups Net markdowns Net sales Beginning inventory Plus: Net purchases Net markups Less: Net markdowns Goods available for sale Cost-to-retail percentage Cost $35,000 19,120 Required: Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October. Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $50,000 31,600 1,200 800 32,000 Cost $ 35,000 $ 19,120 54,120 Retail 50,000 31,600 81,600 Cost-to-Retail Ratio

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Description: San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost ofgoods sold. The following data are available for the month of October 2018:Beginning inventoryNet purchasesNet markups

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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