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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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
Required:
Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October.
Net markups
Less: Net markdowns
Goods available for sale
Cost-to-retail percentage
Cost
$35,000
19,120
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
D
Cost-to-Retail
Ratio
A
www
Mauk](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f04870c-fd4e-4f56-b4fd-eac8c2d1a203%2F59439999-15aa-42ae-8434-c08af48125f2%2F60xe42t_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Required:
Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October.
Net markups
Less: Net markdowns
Goods available for sale
Cost-to-retail percentage
Cost
$35,000
19,120
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
D
Cost-to-Retail
Ratio
A
www
Mauk
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