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

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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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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