LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly...
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Accounting
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 2021:
Cost
Retail
Beginning inventory
$
46,000
$
66,000
Purchases
213,000
406,000
Freight-in
15,558
Purchase returns
7,000
9,000
Net markups
6,400
Net markdowns
4,100
Normal breakage
9,000
Net sales
286,000
Employee discounts
2,400
Sales are recorded net of employee discounts.
1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.
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