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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
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 at the end of the year: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $ 430,000 920,000 62,550 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 565,000 1,340,000 Estimate ending inventory and cost of goods sold (LIFO). Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Beginning inventory Plus: Net purchases Freight-in Net markups Less: Net markdowns Goods available for sale (excluding beginning Inventory) Goods available for sale (including beginning Inventory) Cost-to-retail percentage Less: Net sales 61,000 31,000 1,265,000 Answer is complete but not entirely correct. $ $ Cost 430,000 $ 920,000 62,550 982,550 1,412,550 480,524 X 932,026 $ Retail 565,000 1,340,000 61,000 (31,000) 1,370,000 1,935,000 (1,265,000) 670,000 Cost-to- Retail Ratio 71.72%
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