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! Required information LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Cost $ 43,000 210,000 17,322 5,500 Retail $ 63,000 403,000 Cost-to-retail percentage 7,500 6,100 3,800 7,500 283,000 2,100 Normal breakage Net sales Employee discounts Sales are recorded net of employee discounts. 2. Recompute the cost-to-retail percentage using the average cost method. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34%).

! Required information LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Cost $ 43,000 210,000 17,322 5,500 Retail $ 63,000 403,000 Cost-to-retail percentage 7,500 6,100 3,800 7,500 283,000 2,100 Normal breakage Net sales Employee discounts Sales are recorded net of employee discounts. 2. Recompute the cost-to-retail percentage using the average cost method. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34%).

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11E: Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the...
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! Required information LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Cost $ 43,000 210,000 17,322 5,500 Retail $ 63,000 403,000 Cost-to-retail percentage Normal breakage Net sales Employee discounts Sales are recorded net of employee discounts. 7,500 6,100 3,800 7,500 283,000 2,100 2. Recompute the cost-to-retail percentage using the average cost method. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34%).
Transcribed Image Text:! Required information LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Cost $ 43,000 210,000 17,322 5,500 Retail $ 63,000 403,000 Cost-to-retail percentage Normal breakage Net sales Employee discounts Sales are recorded net of employee discounts. 7,500 6,100 3,800 7,500 283,000 2,100 2. Recompute the cost-to-retail percentage using the average cost method. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34%).
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