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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 at the end of the year. Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Beginning inventory Plus: Net purchases Freight-in Cost $ 400,000 905,000 45,000 Estimate ending Inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (1.e., 0.1234 should be entered as 12.34%.) Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning Inventory) Cost-to-retail percentage Less Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 535,000 1,310,000 58,000 28,000 1,250,000 $ Cost 400,000 $ 905,000 45,000 950,000 1,350,000 S Retail 535,000 1,310,000 58,000 (28,000) 1,340,000 1,875,000 (1,250,000) 625,000 Cost to Retail Ratio

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 at the end of the year. Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Beginning inventory Plus: Net purchases Freight-in Cost $ 400,000 905,000 45,000 Estimate ending Inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (1.e., 0.1234 should be entered as 12.34%.) Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning Inventory) Cost-to-retail percentage Less Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 535,000 1,310,000 58,000 28,000 1,250,000 $ Cost 400,000 $ 905,000 45,000 950,000 1,350,000 S Retail 535,000 1,310,000 58,000 (28,000) 1,340,000 1,875,000 (1,250,000) 625,000 Cost to Retail Ratio

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikram 

Kiddle 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 at the end of the year Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $ 400,000 905,000 45,000 Beginning inventory Plus: Net purchases Freight-in Retail $ 535,000 1,310,000 Estimate ending Inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34%.) Net markups Less: Net markdowns. Goods available for sale (excluding beginning Inventory) Goods available for sale (including beginning Inventory) Cost-to-retail percentage Less Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 58,000 28,000 1,250,000 $ Cost 400,000 $ 905,000 45,000 950,000 1,350,000 $ Retail 535,000 1,310,000 58,000 (28,000) 1,340,000 1,875,000 (1,250,000) 625,000 Cost to Retail Ratio
Transcribed Image Text:Kiddle 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 at the end of the year Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $ 400,000 905,000 45,000 Beginning inventory Plus: Net purchases Freight-in Retail $ 535,000 1,310,000 Estimate ending Inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (l.e., 0.1234 should be entered as 12.34%.) Net markups Less: Net markdowns. Goods available for sale (excluding beginning Inventory) Goods available for sale (including beginning Inventory) Cost-to-retail percentage Less Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 58,000 28,000 1,250,000 $ Cost 400,000 $ 905,000 45,000 950,000 1,350,000 $ Retail 535,000 1,310,000 58,000 (28,000) 1,340,000 1,875,000 (1,250,000) 625,000 Cost to Retail Ratio
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