6 Exercise 9-15 (Algo) Retail inventory method; LIFO [LO9-3]Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retailinventory method to estimate ending inventory and cost of goods sold. The following data are available:Beginning inventoryNet purchasesNet markupsNet markdownsNet sales.Cost$ 320,000707,000Required:Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold using the information provided.Assume stable retail prices during the period.Beginning inventoryNet purchasesNet markupsNet markdownsRetail$ 382,000995,00023,0008,000961,000Note: Round ratio calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34%. ). Enter amounts to be deducted with aminus sign.Goods available for sale (excluding beginning inventory)Goods available for sale (including beginning inventory)Cost-to-retail percentage (beginning)Cost-to-retail percentage (current)Net salesEstimated ending inventory at retailEstimated ending inventory at costEstimated cost of goods sold$CostRetail320,000 $ 382,000Cost-to-RetailRatio%

Last in, first out (LIFO):- As per LIFO method records the most recently produced items as sold…

Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available: Beginning inventory Net purchases Net markups Net markdowns Net sales. Cost $ 320,000 707,000 Retail $ 382,000 995,000 23,000 8,000 961,000

Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available: Beginning inventory Net purchases Net markups Net markdowns Net sales. Cost $ 320,000 707,000 Retail $ 382,000 995,000 23,000 8,000 961,000

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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