Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Beginning inventory Purchases Freight-in Net markups Net markdowns Net sales Cost $ 210,000 650,000 10,000 Retail $ 282,000 856,000 22,000 4,200 820,000 Required: Determine ending inventory and cost of goods sold by applying the conventional retail method 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.

Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Beginning inventory Purchases Freight-in Net markups Net markdowns Net sales Cost $ 210,000 650,000 10,000 Retail $ 282,000 856,000 22,000 4,200 820,000 Required: Determine ending inventory and cost of goods sold by applying the conventional retail method 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.

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Description: Colonial Corporation uses the retail method to value its inventory. The following information is available for the year:Beginning inventoryPurchasesFreight-inNet markupsNet markdownsNet salesCost$ 210,000650,00010,000Retail$ 282,000856,00022,0004,20

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 6PB: Use the last-in, first-out method (LIFO) cost allocation method, with perpetual inventory updating,...

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