LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly...
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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 2018 Cost Retail $ 57,00e $ 77,000 224,e00 417,e00 Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal breakage Net sales Employee discounts 16,690 8,00 10, 50e 7,500 5,200 10,500 297,000 1,900 Sales are recorded net of employee discounts Required: 1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method 2. Recompute the cost-to-retail percentage using the average cost method
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