Need help to calculate COST-TO-RETAIL and ESTIMATED ENDING INVENTORY AT COST Brief Exercise 9-8...
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Need help to calculate COST-TO-RETAIL and ESTIMATED ENDING INVENTORY AT COST
Brief Exercise 9-8 (Algo) Retail inventory method; LIFO (LO9-3] 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 $440,000 $ 575,000 925,000 1,350,000 62,150 62,000 32,000 1,270,000 Estimate ending inventory and cost of goods sold (LIFO). (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)) X Answer is complete but not entirely correct. Cost Retail Cost-to- Retail Ratio $ Beginning inventory Plus: Net purchases Freight-in Net markups 440,000 925,000 62,150 575,000 1,350,000 0 Less: Net markdowns 0 62,000 (32,000) 1,380,000 1,955,000 Goods available for sale (excluding beg. Inventory) Goods available for sale (including beg. Inventory) 987,150 1,427,150 Cost-to-retail percentage 73.00% X Less: Net sales 0 (1,270,000) 685,000 $ Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 500,050 927,100 $
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