Adams Corporation 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 September 2021: Cost Retail Beginning inventory $ 26,000 $ 39,000 Net purchases 13,000 ? Net markups 8,300 Net markdowns 2,300 Net sales ? The company used the average cost flow method and estimated inventory at the end of September to be $22,980.00. If the company had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%. Required: Compute net purchases at retail and net sales for the month of September using the information provided. (Do not round your intermediate calculations.)
Adams Corporation 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 September 2021: Cost Retail Beginning inventory $ 26,000 $ 39,000 Net purchases 13,000 ? Net markups 8,300 Net markdowns 2,300 Net sales ? The company used the average cost flow method and estimated inventory at the end of September to be $22,980.00. If the company had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%. Required: Compute net purchases at retail and net sales for the month of September using the information provided. (Do not round your intermediate calculations.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...
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Adams Corporation 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 September 2021:
| Cost | Retail | |||
| Beginning inventory | $ | 26,000 | $ | 39,000 |
| Net purchases | 13,000 | ? | ||
| Net markups | 8,300 | |||
| Net markdowns | 2,300 | |||
| Net sales | ? | |||
The company used the average cost flow method and estimated inventory at the end of September to be $22,980.00. If the company had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%.
Required:
Compute net purchases at retail and net sales for the month of September using the information provided. (Do not round your intermediate calculations.)
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