70.2K

Verified Solution

Link Copied!

Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the three months ending March 31, 2021:

	Cost			Retail
Beginning inventory	$	310,000		$	381,000
Net purchases		750,000			986,000
Net markups					21,000
Net markdowns					7,000
Net sales					946,000

Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold for the three months ending March 31, 2021, using the information provided. Assume stable retail prices during the period.

Cost Retail Cost-to-Retail Ratio Beginning inventory $310,000 $381,000 Plus: Net purchases 750,000 986,000 Net markups 0 21,000 Less: Net markdowns 0 7,000 Goods available for sale (excluding beg. inventory) 750,000 1,000,000 Goods available for sale (including beg. inventory) 1,060,000 1,381,000 Cost-to-retail percentage 75 % Less: Net sales 0 946,000 Estimated ending inventory at retail $435,000 Estimated ending inventory at cost x Estimated cost of goods sold x

*The x's I placed in the boxes are the answers I need

Answer & Explanation Solved by verified expert

See Answer