Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending...
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Kiddie World 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 quarter ending September 30, 2021: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost Retail $300,000 $ 450,000 861,000 1,210,000 22,000 48,000 18,000 1,200,000 Estimate ending inventory and cost of goods sold using the conventional method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)) Cost Retail Cost-to-Retail Ratio $ $ Beginning inventory Plus: Net purchases Freight-in Net markups 300,000 861,000 22,000 450,000 1,210,000 Goods available for sale 48,000 1,708,000 (18,000) 1,690,000 Less: Net markdowns Goods available for sale $ 1,183,000 $ Cost-to-retail percentage Less: Net sales (1,200,000) 490,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold
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