Kiddie World uses a periodic Inventory system and the retall 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 Cost $ 460,000 940,000 52,700 Retail $ 590,000 1,370,000 64,000 Net markdowns Net sales 34,000 1,280,000 Estimate ending Inventory and cost of goods sold (average cost). Note: Round ratio calculation to 2 decimal places (I.e., 0.1234 should be entered as 12.34%.) Beginning inventory Plus: Net purchases Freight-in Net markups Less: Net markdowns Goods available for sale Cost-to-retail percentage Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Cost Retail Cost-to-Retail Ratio $ 480.000 S 940,000 590,000 1,370,000 52,700 64,000 (34.000) 1,452,700 1,990,000 $ (1,280,000) 710.000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Kiddie World uses a periodic Inventory system and the retall 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
Cost
$ 460,000
940,000
52,700
Retail
$ 590,000
1,370,000
64,000
Net markdowns
Net sales
34,000
1,280,000
Estimate ending Inventory and cost of goods sold (average cost).
Note: Round ratio calculation to 2 decimal places (I.e., 0.1234 should be entered as 12.34%.)
Beginning inventory
Plus: Net purchases
Freight-in
Net markups
Less: Net markdowns
Goods available for sale
Cost-to-retail percentage
Less: Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Cost
Retail
Cost-to-Retail
Ratio
$
480.000 S
940,000
590,000
1,370,000
52,700
64,000
(34.000)
1,452,700
1,990,000
$
(1,280,000)
710.000
Transcribed Image Text:Kiddie World uses a periodic Inventory system and the retall 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 Cost $ 460,000 940,000 52,700 Retail $ 590,000 1,370,000 64,000 Net markdowns Net sales 34,000 1,280,000 Estimate ending Inventory and cost of goods sold (average cost). Note: Round ratio calculation to 2 decimal places (I.e., 0.1234 should be entered as 12.34%.) Beginning inventory Plus: Net purchases Freight-in Net markups Less: Net markdowns Goods available for sale Cost-to-retail percentage Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Cost Retail Cost-to-Retail Ratio $ 480.000 S 940,000 590,000 1,370,000 52,700 64,000 (34.000) 1,452,700 1,990,000 $ (1,280,000) 710.000
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