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 for the three months ending March 31, 2021: Beginning inventory Net purchases Net markups Net markdowns Net sales Cost Retail $250,000 663,000 $364,000 830,000 29,000 9,000 805,000 Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold for the three months ending March 31, 2021, using the information provided. Assume stable retail prices during the period. (Round ratlo calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Cost Retail Cost-to-Retail Ratio Beginning inventory S 250.000 $ Net purchases Net markups 663,000 364.000 830.000 29.000 Net markdowns (9.000) Goods available for sale (excluding beg. inventory) Goods available for sale (including beg. inventory) 663.000 850.000 913.000 1.214.000 Cost-to-retail percentage (beginning) 68.88 96 78.00 96 Cost-to-retail percentage (current) Net sales Estimated ending inventory at retail Estimated ending inventory at cost Faimated cost of goods sold S 1.214.000
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 for the three months ending March 31, 2021: Beginning inventory Net purchases Net markups Net markdowns Net sales Cost Retail $250,000 663,000 $364,000 830,000 29,000 9,000 805,000 Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold for the three months ending March 31, 2021, using the information provided. Assume stable retail prices during the period. (Round ratlo calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Cost Retail Cost-to-Retail Ratio Beginning inventory S 250.000 $ Net purchases Net markups 663,000 364.000 830.000 29.000 Net markdowns (9.000) Goods available for sale (excluding beg. inventory) Goods available for sale (including beg. inventory) 663.000 850.000 913.000 1.214.000 Cost-to-retail percentage (beginning) 68.88 96 78.00 96 Cost-to-retail percentage (current) Net sales Estimated ending inventory at retail Estimated ending inventory at cost Faimated cost of goods sold S 1.214.000
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
Related questions
Question
Ashvinbhai
Transcribed Image Text: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 for the three months ending
March 31, 2021:
Beginning inventory
Net purchases
Net markups
Net markdowns
Net sales
Cost
Retail
$250,000
663,000
$364,000
830,000
29,000
9,000
805,000
Required:
Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold for the three months ending March 31,
2021, using the information provided. Assume stable retail prices during the period. (Round ratlo calculation to 2 decimal places (l.e.,
0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.)
Cost
Retail
Cost-to-Retail
Ratio
Beginning inventory
S
250.000 $
Net purchases
Net markups
663,000
364.000
830.000
29.000
Net markdowns
(9.000)
Goods available for sale (excluding beg. inventory)
Goods available for sale (including beg. inventory)
663.000
850.000
913.000
1.214.000
Cost-to-retail percentage (beginning)
68.88 96
78.00 96
Cost-to-retail percentage (current)
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Faimated cost of goods sold
S 1.214.000
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