2. Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2021 fiscal year: Cost Retail Beginning inventory$255,000 $470,000 Net purchases 656,000 1,215,000 Freight-in 28,400 Net markups 23,000 Net markdowns 11,000 Normal spoilage 8,000 Sales 1,370,000 The company records sales to employees net of discounts. These discounts totaled $22,000 for the year.Estimate ending inventory and cost of goods sold using the conventional method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)) Estimate ending inventory and cost of goods sold using the conventional method. (Round ratio calculation to 2 decimal places (i.e.,0.1234 should be entered as 12.34%.))Cost-to-RetailRatioCostRetailBeginning inventory$255,000 $470,000Plus: Purchases656.0001,215,000Freight-in28,400Net markups23,000Goods available for sale1,708,000Less: Net markdowns(11,000)Goods available for sale939,4001.697.000Cost-to-retail percentageLess: Normal spoilage(8,000)Less: Net salesSales(1,370,000)Employee discounts(22,000)Estimated ending inventory at retail$297.000Estimated ending inventory at costEstimated cost of goods sold

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Description: 2. Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2021 fiscal year: Cost Retail Beginning inventory$255,000 $470,000 Net purchases 656,000 1,215,0

Conventional method is the method used in retail inventory method for computation of ending…

Answered: Beginning inventory $ 255,000 $…

Survey of Accounting (Accounting I)

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ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

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2. Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2021 fiscal year:

	Cost		Retail
Beginning inventory	$	255,000		$	470,000
Net purchases		656,000			1,215,000
Freight-in		28,400
Net markups					23,000
Net markdowns					11,000
Normal spoilage					8,000
Sales					1,370,000

The company records sales to employees net of discounts. These discounts totaled $22,000 for the year.

Estimate ending inventory and cost of goods sold using the conventional method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.))

Estimate ending inventory and cost of goods sold using the conventional method. (Round ratio calculation to 2 decimal places (i.e.,
0.1234 should be entered as 12.34%.))
Cost-to-Retail
Ratio
Cost
Retail
Beginning inventory
$
255,000 $
470,000
Plus: Purchases
656.000
1,215,000
Freight-in
28,400
Net markups
23,000
Goods available for sale
1,708,000
Less: Net markdowns
(11,000)
Goods available for sale
939,400
1.697.000
Cost-to-retail percentage
Less: Normal spoilage
(8,000)
Less: Net sales
Sales
(1,370,000)
Employee discounts
(22,000)
Estimated ending inventory at retail
$
297.000
Estimated ending inventory at cost
Estimated cost of goods sold

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