4 Perry Corporation uses the retail method to value its inventory. The following information is ava 5 6 7 8 9 0 1 2 3 4 Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $300,000 343,460 Retail $417,000 500,400 6,000 10,400 8,300 644,000 5 Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided 6 7 Compute the cost-to-retail percentage under the conventional retail method 8 Cost Retail 19 20 21 22 23. Goods available for sale Estimated ending inventory Estimated cost of goods sold

Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.

Perpetual inventory using FIFO Assume that the business in Exercise 6-5 maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3.

Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).