Question
Aztec Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are
Aztec Corporation 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 month of September:
Cost | Retail | |
---|---|---|
Beginning inventory | $ 21,000 | $ 35,000 |
Net purchases | 10,500 | ?question mark |
Net markups | 4,000 | |
Net markdowns | 1,000 | |
Net sales | ?question mark |
The company used the average cost flow method and estimated inventory at the end of September to be $17,437.50. If the company had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%.
Required:
Compute net purchases at retail and net sales for the month of September using the information provided.
Note: Do not round your intermediate calculations.
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