Vikram Kiddle World uses a periodic inventory system and the retail inventory method to estimate ending Inventory and cost of goods sold.The following data are available at the end of the yearBeginning inventoryNet purchasesFreight-inNet markupsNet markdownsNet salesCost$ 400,000905,00045,000Beginning inventoryPlus: Net purchasesFreight-inRetail$ 535,0001,310,000Estimate ending Inventory and cost of goods sold (LIFO).Note: Round ratio calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34%.)Net markupsLess: Net markdowns.Goods available for sale (excluding beginning Inventory)Goods available for sale (including beginning Inventory)Cost-to-retail percentageLess Net salesEstimated ending inventory at retailEstimated ending inventory at costEstimated cost of goods sold58,00028,0001,250,000$Cost400,000 $905,00045,000950,0001,350,000$Retail535,0001,310,00058,000(28,000)1,340,0001,875,000(1,250,000)625,000Cost to RetailRatio

On the balance sheet, ending inventory is included in the current assets. Assets classified as…

Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold The following data are available at the end of the year. Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Beginning inventory Plus: Net purchases Freight-in Cost $ 400,000 905,000 45,000 Estimate ending Inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (1.e., 0.1234 should be entered as 12.34%.) Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning Inventory) Cost-to-retail percentage Less Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 535,000 1,310,000 58,000 28,000 1,250,000 $ Cost 400,000 $ 905,000 45,000 950,000 1,350,000 S Retail 535,000 1,310,000 58,000 (28,000) 1,340,000 1,875,000 (1,250,000) 625,000 Cost to Retail Ratio

Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold The following data are available at the end of the year. Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Beginning inventory Plus: Net purchases Freight-in Cost $ 400,000 905,000 45,000 Estimate ending Inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (1.e., 0.1234 should be entered as 12.34%.) Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning Inventory) Cost-to-retail percentage Less Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 535,000 1,310,000 58,000 28,000 1,250,000 $ Cost 400,000 $ 905,000 45,000 950,000 1,350,000 S Retail 535,000 1,310,000 58,000 (28,000) 1,340,000 1,875,000 (1,250,000) 625,000 Cost to Retail Ratio

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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