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2 part Question! Required information LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data
2 part Question!
Required information 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 2021: Beginning inventory Purchases Treight-in Purchase returns Net markups Net markdown Normal breakage Net sales Employee discount Cost Retail $ 54,000 $ 74,000 221,000 414,000 18,358 6,500 9,000 7,200 4,900 9.000 294,000 1,600 Sales are recorded net of employee discounts. Required: 1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Answer is complete but not entirely correct. Cost Retail Cost-to- Retail Ratio $ $ 74,000 414,000 Beginning inventory Purchases Freight-in Purchase returns 54,000 221,000 18,358 (6,500) Net markups (9,000) 7,200 486,200 (4.900) 481,300 Net markdowns Goods available for sale 286,858 69.17 % Cost-to-retail percentage (conventional retail method) (9.000) Normal breakage Net sales: Sales Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold (294,000) (1.600) 176.700 $ 74,868 X 211,990 $ 2. 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%).) Answer is complete but not entirely correct. Cost-to-retail percentage 69.17 % Step by Step Solution
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