Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all boxes and tell me why my Estimated Ending inventory at cost and Estimated cost of goods sold is wrong Crosby Company owns

image text in transcribed

Please answer all boxes and tell me why my "Estimated Ending inventory at cost" and "Estimated cost of goods sold" is wrong

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 $300,000 833,000 Beginning inventory Net purchases Net markups Net markdowns Net sales Retail $380,000 962,000 24,000 6,000 924,000 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 $ 380,000 300,000 $ 833,000 962.000 0 Beginning inventory Net purchases Net markups Net markdowns Goods available for sale (excluding beg. inventory) Goods available for sale (including beg. inventory) 0 833,000 1,133,00 24,000 (6,000) 980,000 1,360,000 Cost-to-retail percentage (beginning) Cost-to-retail percentage (current) 78.95 % 85.00 % (924,000) 436,000 $ Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 252,410 880,590 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Approach

Authors: Robyn Moroney

1st Canadian Edition

978-1118472972, 1118472977, 978-1742165943

More Books

Students also viewed these Accounting questions

Question

the benefits of collaboration within supply chains;

Answered: 1 week ago

Question

Compare and contrast cultural preferences for online privacy

Answered: 1 week ago

Question

Provide examples of the various microcultures in the United States

Answered: 1 week ago