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:

CostRetailBeginning Inventory390,000525,000Net Purchases900,0001,300,000Freight-in27,050 Net Markups 57,000Net Markdowns 27,000Net Sales 1,245,000

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%.)

I HAVE ASKED THIS QUESTION A LOT AND NO ONE HAS GOTTEN IT RIGHT! ALL NUMBERS ARE GIVEN EXCEPT THE ESTIMATED INVENTORY AT COST AND THE ESTIMATED COST OF GOODS SOLD. SO DO NOT CHANGE THE RATIO AND ALL OTHER NUMBERS.

REMEMBER THIS IS LIFO. So Simply multiplying the ratio * the estimated ending inventory at retail is INCORRECT as shown in this picture. The only part I know for sure is right is the ratio.

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: 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%.)