Chapter 9, Problem 9.10BE

Conventional retail method

• LO9–4

Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2018 fiscal year:

	Cost	Retail
Beginning inventory	$220,000	$400,000
Net purchases	640,000	1,180,000
Freight-in	17,800
Net mark-ups		16,000
Net markdowns		6,000
Normal spoilage		3,000
Net sales		1,300,000

The company records sales to employees net of discounts. These discounts totaled $15,000 for the year. Estimate ending inventory and cost of goods sold using the conventional method.