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 Cost $ 340,000 873,000 26,000 Beginning inventory Plus: Net purchases Freight-in 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 $ 490,000 1,250,000 Estimate ending inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) 52,000 22,000 1,220,000 $ Cost 340,000 $ 873,000 26,000 899,000 1,239,000 $ Retail 490,000 1,250,000 52,000 (22,000) 1,280,000 1,770,000 (1,220,000) 550,000 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 Cost $ 340,000 873,000 26,000 Beginning inventory Plus: Net purchases Freight-in 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 $ 490,000 1,250,000 Estimate ending inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) 52,000 22,000 1,220,000 $ Cost 340,000 $ 873,000 26,000 899,000 1,239,000 $ Retail 490,000 1,250,000 52,000 (22,000) 1,280,000 1,770,000 (1,220,000) 550,000 Cost-to-Retail Ratio

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Description: Hardev 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 inventoryNet purchasesFreight-inNet markupsNet

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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