San Lorenzo General Store uses a periodic inventory system and the retail invent

Question

San Lorenzo General Store 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 month of October 2018: Cost Retail $58,000 16,280 32,400 2,000 1.200 40.000 $43,000 Beginning inventory Net purchases Net markups Net markdowns Net sales Required: Complete the table below to estimate the average cost of ending inventory and cost of goods soid for October 3 Answer is complete but not entirely correct. Cost-to- Retail Ratio Cost Retail 43,00058.000 Beginning inventory Plus: Net purchases 80 | 32.400 | | 16.28001 32.4000 2.000 Net markups Less: Net markdowns Goods available for sale 001 59,280 1.200 91,200 Cost-to-retail percentage 65% e 38,532 3 59,280 Less: Net sales Estimated ending inventory at retail S 31,920 Estimated ending inventory at cost 20.748 03 Estimated cost of goods sold 38,532

Explanation / Answer

Cost Retail Cost to retail ratio Beginning inventory 43,000 58,000 plus:Net purchases 16,280 32,400         Net markups 2,000 less:Net markdowns -1,200 goods available for sale 59,280 91,200 cost-to -retail percentage 65.00% less:Net sales 40,000 estimated ending inventory at 51,200 retail estimated ending inventory at 33280 cost estimated cost of goods sold 26,000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.