s Grand Department Store, Incorporated, uses the retail inventory method to estimate ending inventory for its monthly financialstatements. The following data pertain to a single department for the month of October:Beginning inventory:At costAt retail)Purchases (exclusive of freight and returns):At costAt retailFreight-inPurchase returns:At costAt retailAdditional markupsMarkup cancellations.Markdowns (net)Normal spoilage and breakageSalesSales returnsBeginning inventoryGoods available for saleCost-to-retail percentageRequired:1. Using the conventional retail ending inventory method, prepare a schedule computing estimated lower of cost or market (LCM)inventory and cost of goods sold for October.Goods available for sale$ 25,00035,000Note: Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and round your finalanswers to the nearest whole dollar.Less: Net Sales98,108151,5005,600Estimated ending inventory at retailEstimated ending inventory at costEstimated cost of goods sold2,6003,3003,0002008505,000144,5003,770CostRetail0Cost-to-RetailRatio

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Description: s Grand Department Store, Incorporated, uses the retail inventory method to estimate ending inventory for its monthly financialstatements. The following data pertain to a single department for the month of October:Beginning inventory:At costAt retail

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Grand Department Store, Incorporated, uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October: Beginning inventory: At cost At retail Purchases (exclusive of freight and returns): At cost At retail Freight-in Purchase returns: At cost At retail. Additional markups Markup cancellations Markdowns (net) Normal spoilage and breakage Sales Sales returns Beginning inventory Goods available for sale Cost-to-retail percentage Goods available for sale Less: Net Sales $ 25,000 35,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 98,108 151,500 5,600 Required: 1. Using the conventional retail ending inventory method, prepare a schedule computing estimated lower of cost or market (LCM) inventory and cost of goods sold for October. Note: Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and round your final answers to the nearest whole dollar. 2,600 3,300 3,000 200 850 5,000 144,500 3,770 Cost Retail 0 Cost-to-Retail Ratio

Grand Department Store, Incorporated, uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October: Beginning inventory: At cost At retail Purchases (exclusive of freight and returns): At cost At retail Freight-in Purchase returns: At cost At retail. Additional markups Markup cancellations Markdowns (net) Normal spoilage and breakage Sales Sales returns Beginning inventory Goods available for sale Cost-to-retail percentage Goods available for sale Less: Net Sales $ 25,000 35,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 98,108 151,500 5,600 Required: 1. Using the conventional retail ending inventory method, prepare a schedule computing estimated lower of cost or market (LCM) inventory and cost of goods sold for October. Note: Round your cost-to-retail percentage to 2 decimal places (i.e., 0.1234 should be entered as 12.34) and round your final answers to the nearest whole dollar. 2,600 3,300 3,000 200 850 5,000 144,500 3,770 Cost Retail 0 Cost-to-Retail Ratio

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 12E: Alternative Inventory Methods Park Companys perpetual inventory records indicate the following...

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