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 $ 49,000 14,765 Retail $ 64,000 33,000 2,600 1,500 46,000 Required: Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the Information provided. 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.
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 $ 49,000 14,765 Retail $ 64,000 33,000 2,600 1,500 46,000 Required: Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the Information provided. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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
$ 49,000
14,765
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
$ 64,000
33,000
2,600
1,500
46,000
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$
Cost
49,000 $
Retail
64,000
Cost-to-Retail
Ratio
%
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