Question
BE 9-7 Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following
BE 9-7
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:
Cost | Retail | |||
Beginning inventory | $ | 300,000 | $ | 450,000 |
Net purchases | 861,000 | 1,210,000 | ||
Freight-in | 22,000 | |||
Net markups | 48,000 | |||
Net markdowns | 18,000 | |||
Net sales | 1,200,000 |
Estimate ending inventory and cost of goods sold (average cost).
BE 9-8
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:
Cost | Retail | |||
Beginning inventory | $ | 300,000 | $ | 450,000 |
Net purchases | 861,000 | 1,210,000 | ||
Freight-in | 22,000 | |||
Net markups | 48,000 | |||
Net markdowns | 18,000 | |||
Net sales | 1,200,000 |
Estimate ending inventory and cost of goods sold (LIFO).
BE 9-15
In 2021, Winslow International, Inc.s controller discovered that ending inventories for 2019 and 2020 were overstated by $200,000 and $500,000, respectively.
Determine the effect of the errors on retained earnings at January 1, 2021. (Ignore income taxes.)
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