Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2016 fiscal year: Retail Cost $ 400,000 $220,000 640,000 17,800 Beginning inventory Net purchases Freight-in Net markups 1,180,000 16,000 Net markdowns 6,000 3,000 1,300,000 Normal spoilage Net sales The company records sales to employees net of discounts. These discounts totaled $15,000 for the year. Estimate ending inventory and cost of goods sold using the conventional method.
Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2016 fiscal year: Retail Cost $ 400,000 $220,000 640,000 17,800 Beginning inventory Net purchases Freight-in Net markups 1,180,000 16,000 Net markdowns 6,000 3,000 1,300,000 Normal spoilage Net sales The company records sales to employees net of discounts. These discounts totaled $15,000 for the year. Estimate ending inventory and cost of goods sold using the conventional method.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter13: Accounting For Merchandise Inventory
Section: Chapter Questions
Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...
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