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: Beginning inventory Net purchases Net markups Net markdowns Net sales Required: Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the information provided. Beginning inventory Net purchases Net markups Net markdowns Cost $ 55,000 16,400 Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign. Goods available for sale Cost-to-retail percentage Net sales Retail $ 70,000 33,600 3,200 1,800 52,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold $ Cost 55,000 $ 55,000 $ Retail 70,000 70,000 70,000 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: Beginning inventory Net purchases Net markups Net markdowns Net sales Required: Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the information provided. Beginning inventory Net purchases Net markups Net markdowns Cost $ 55,000 16,400 Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign. Goods available for sale Cost-to-retail percentage Net sales Retail $ 70,000 33,600 3,200 1,800 52,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold $ Cost 55,000 $ 55,000 $ Retail 70,000 70,000 70,000 Cost-to-Retail Ratio %
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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![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:
Beginning inventory
Net purchases
Net markups
Net markdowns
Net sales
Cost
$ 55,000
16,400
Required:
Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the information
provided.
Beginning inventory
Net purchases
Net markups
Net markdowns
Retail
$ 70,000
33,600
3,200
1,800
52,000
Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a
minus sign.
Goods available for sale
Cost-to-retail percentage
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$
Cost
55,000 $
55,000
$
Retail
70,000
70,000
70,000
Cost-to-Retail
Ratio
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80f0c184-3e7a-491c-94b7-7f7ab43bdd51%2F5cf2f4fb-a79c-489f-a15e-4e738a7e4a91%2Fnz4r0vo_processed.png&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:
Beginning inventory
Net purchases
Net markups
Net markdowns
Net sales
Cost
$ 55,000
16,400
Required:
Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the information
provided.
Beginning inventory
Net purchases
Net markups
Net markdowns
Retail
$ 70,000
33,600
3,200
1,800
52,000
Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a
minus sign.
Goods available for sale
Cost-to-retail percentage
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$
Cost
55,000 $
55,000
$
Retail
70,000
70,000
70,000
Cost-to-Retail
Ratio
%
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