Duke Co. uses the retail inventory method to estimate endinginventory and cost of goods sold. Data for the year 2016 is asfollow:
Cost retail Beginning inventory $140,000 $280,000 Purchases 420,000 690,000 Freight in 16,000 Purchase Returns 12,000 18,000 Net markups 24,000 Net markdowns 36,000 Normal spiolage 5,000 Sales 700,000 Sales returns 20,000 Employees discounts 6,000
The company records sales net of employee discounts.
Required:
Estimate Duke's ending inventory and cost of goods sold for theyear using the retail inventory method and the followingapplications:
1. Average Cost
2. Conventional
3. LIFO
please answer the question completely!! and apply all of thethree methods.
Duke Co. uses the retail inventory method to estimate endinginventory and cost of goods sold. Data for the year 2016 is asfollow:
| Cost | retail | |
| Beginning inventory | $140,000 | $280,000 |
| Purchases | 420,000 | 690,000 |
| Freight in | 16,000 | |
| Purchase Returns | 12,000 | 18,000 |
| Net markups | 24,000 | |
| Net markdowns | 36,000 | |
| Normal spiolage | 5,000 | |
| Sales | 700,000 | |
| Sales returns | 20,000 | |
| Employees discounts | 6,000 |
The company records sales net of employee discounts.
Required:
Estimate Duke's ending inventory and cost of goods sold for theyear using the retail inventory method and the followingapplications:
1. Average Cost
2. Conventional
3. LIFO
please answer the question completely!! and apply all of thethree methods.
Related questions
Duke Co. uses the retail inventory method to estimate endinginventory and cost of goods sold. Data for the year 2016 is asfollow:
| Cost | retail | |
| Beginning inventory | $140,000 | $280,000 |
| Purchases | 420,000 | 690,000 |
| Freight in | 16,000 | |
| Purchase Returns | 12,000 | 18,000 |
| Net markups | 24,000 | |
| Net markdowns | 36,000 | |
| Normal spiolage | 5,000 | |
| Sales | 700,000 | |
| Sales returns | 20,000 | |
| Employees discounts | 6,000 |
The company records sales net of employee discounts.
Required:
Estimate Duke's ending inventory and cost of goods sold for theyear using the retail inventory method and the followingapplications:
1. Average Cost
2. Conventional
3. LIFO
LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March 2018:
| Cost | Retail | |||
| Beginning inventory | $ | 50,000 | $ | 70,000 |
| Purchases | 217,000 | 410,000 | ||
| Freight-in | 10,986 | |||
| Purchase returns | 4,500 | 7,000 | ||
| Net markups | 6,800 | |||
| Net markdowns | 4,500 | |||
| Normal breakage | 7,000 | |||
| Net sales | 290,000 | |||
| Employee discounts | 2,800 | |||
Sales are recorded net of employee discounts.
1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.
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2. Recompute the cost-to-retail percentage using the average cost method.
Recompute the cost-to-retail percentage using the average cost method. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34%).)
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