Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost $290,000 622,000 18,000 Retail $290,000 920,000 Merchandise inventory, January 1, 2021 Purchases Freight-in Net markups Net markdowns Net sales 30,000 5,000 900,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (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.) Cost Retail Cost-to-Retail Ratio $ 290,000 $ 622,000 290,000 920,000 Beginning inventory Purchases Freight-in Net markups 18,000 30,000 1,240,000 (5,000) 1,235,000 Net markdowns Goods available for sale 930,000 Cost-to-retail percentage % Net sales (900,000) 335,000 $ Estimated ending inventory at retail Estimated ending inventory at cost 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 Freight-in Purchase returns Net markups Net markdowns Normal breakage Net sales Employee discounts Cost Retail $ 59,000 $ 79,000 226,000 419,000 15,578 9,000 11,500 7,700 5,400 11,500 299,000 2,100 Sales are recorded net of employee discounts. Exercise 9-17 (Algo) Part 1 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.) Cost Retail Cost-to-Retail Ratio $ Beginning inventory Purchases 59,000 $ 226,000 79,000 419,000 Freight-in Purchase returns Net markups 15,578 (9,000) (11,500) 7,700 494,200 (5,400) 488,800 Net markdowns Goods available for sale 291,578 Cost-to-retail percentage (conventional retail method) % Normal breakage Net sales: Sales Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold (299,000) (2,100) 187,700 $ ! Required information Exercise 9-17 (Algo) Conventional and average cost retail methods; employee discounts [LO9-3, 9-4] 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 Freight-in Purchase returns Net markups Net markdowns Normal breakage Net sales Employee discounts Cost Retail $ 59,000 $ 79,000 226,000 419,000 15,578 9,000 11,500 7,700 5,400 11,500 299,000 2,100 Sales are recorded net of employee discounts. Exercise 9-17 (Algo) Part 2 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%).) Cost-to-retail percentage % Crosby Company owns a chain of hardware stores throughout the state. The company 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 three months ending March 31, 2021: Cost $ 290,000 784,000 Beginning inventory Net purchases Net markups Net markdowns Net sales Retail $368,000 960,000 25,000 5,000 926,000 Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold for the three months ending March 31, 2021, using the information provided. Assume stable retail prices during the period. (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.) Cost Retail Cost-to-Retail Ratio $ 290,000 $ 368,000 Beginning inventory Net purchases Net markups Net markdowns Goods available for sale (excluding beg. inventory) Goods available for sale (including beg. inventory) 0 0 290,000 368,000 % Cost-to-retail percentage (beginning) Cost-to-retail percentage (current) % $ 368,000 Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 $ 31 29 51 8 16 Product 2 $101 96 131 30 41 Product 3 $ 61 51 65 9 23 Required: What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? Product Cost Replacement cost NRV NRV - NP Market Per Unit Inventory Value 1 $ 31 $ 29 2 101 96 3 3 61 51