Question
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
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:
| Cost | Retail | |||
| Beginning inventory | $ | 51,000 | $ | 71,000 |
| Purchases | 218,000 | 411,000 | ||
| Freight-in | 15,212 | |||
| Purchase returns | 5,000 | 7,500 | ||
| Net markups | 6,900 | |||
| Net markdowns | 4,600 | |||
| Normal breakage | 7,500 | |||
| Net sales | 291,000 | |||
| Employee discounts | 2,900 | |||
Sales are recorded net of employee discounts.
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?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
978-1259307416
