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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 for the quarter ending September 30, 2021: Retail 525,000 1,300, 000 Cost Beginning inventory Net purchases Freight-in Net markups Net markdowns $390, 000 $ 900,000 27,050 57,000 27,000 1,245,000 Net sales Estimate ending inventory and cost of goods sold (LIFO). (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 390,000 $ 525,000 Plus: Net purchases 900,000 1,300,000 Freight-in 27,050 Net markups 57,000 Less: Net markdowns 27,000 Goods available for sale (excluding beg. Inventory) 927,050 1,330,000 Goods available for sale (including beg. Inventory) 1,317.050 1,855,000 Cost-to-retail percentage 71.00% Less: Net sales 1,245,000 Estimated ending inventory at retail $ 610,000 Estimated ending inventory at cost Estimated cost of goods sold $ 1,317,050

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 for the quarter ending September 30, 2021: Retail 525,000 1,300, 000 Cost Beginning inventory Net purchases Freight-in Net markups Net markdowns $390, 000 $ 900,000 27,050 57,000 27,000 1,245,000 Net sales Estimate ending inventory and cost of goods sold (LIFO). (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 390,000 $ 525,000 Plus: Net purchases 900,000 1,300,000 Freight-in 27,050 Net markups 57,000 Less: Net markdowns 27,000 Goods available for sale (excluding beg. Inventory) 927,050 1,330,000 Goods available for sale (including beg. Inventory) 1,317.050 1,855,000 Cost-to-retail percentage 71.00% Less: Net sales 1,245,000 Estimated ending inventory at retail $ 610,000 Estimated ending inventory at cost Estimated cost of goods sold $ 1,317,050

Intermediate Accounting: Reporting And Analysis
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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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 for the quarter ending September 30, 2021: Retail 525,000 1,300, 000 Cost Beginning inventory Net purchases Freight-in Net markups Net markdowns $390, 000 $ 900,000 27,050 57,000 27,000 1,245,000 Net sales Estimate ending inventory and cost of goods sold (LIFO). (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 390,000 $ 525,000 Plus: Net purchases 900,000 1,300,000 Freight-in 27,050 Net markups 57,000 Less: Net markdowns 27,000 Goods available for sale (excluding beg. Inventory) 927,050 1,330,000 Goods available for sale (including beg. Inventory) 1,317.050 1,855,000 Cost-to-retail percentage 71.00% Less: Net sales 1,245,000 Estimated ending inventory at retail $ 610,000 Estimated ending inventory at cost Estimated cost of goods sold $ 1,317,050
Transcribed Image Text: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 for the quarter ending September 30, 2021: Retail 525,000 1,300, 000 Cost Beginning inventory Net purchases Freight-in Net markups Net markdowns $390, 000 $ 900,000 27,050 57,000 27,000 1,245,000 Net sales Estimate ending inventory and cost of goods sold (LIFO). (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 390,000 $ 525,000 Plus: Net purchases 900,000 1,300,000 Freight-in 27,050 Net markups 57,000 Less: Net markdowns 27,000 Goods available for sale (excluding beg. Inventory) 927,050 1,330,000 Goods available for sale (including beg. Inventory) 1,317.050 1,855,000 Cost-to-retail percentage 71.00% Less: Net sales 1,245,000 Estimated ending inventory at retail $ 610,000 Estimated ending inventory at cost Estimated cost of goods sold $ 1,317,050
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