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 2021: Beginning inventory Net purchases Net markups Net markdowns Net sales Cost $44,000 11,410 Retail $59,000 32,500 2,100 1,250 41,000 Required: Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the information provided. (Round ratio calculation to 2 decimal places (l.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 2021: Beginning inventory Net purchases Net markups Net markdowns Net sales Cost $44,000 11,410 Retail $59,000 32,500 2,100 1,250 41,000 Required: Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the information provided. (Round ratio calculation to 2 decimal places (l.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 2021:
Beginning inventory
Net purchases
Net markups
Net markdowns
Net sales
Beginning inventory
Net purchases
Net markups
Net markdowns
Required:
Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the information
provided. (Round ratio calculation to 2 decimal places (l.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
Cost
$44,000
11,418
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$59,000
32,500
2,100
1,250
41,000
$
Cost
44,000 $
11,410
55,410
Retail
59,000
32,500
2,100
(1.250)
92,350
Cost-to-Retail
Ratio
%6
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