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Problem 9-10 Sheridan Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single
Problem 9-10 Sheridan Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2018. Inventory, October 1, 2018 At cost $52,900 78,600 At retail Purchases (exclusive of freight and returns) At cost At retail 283,025 425,100 16,400 Freight-in Purchase returns At cost At retail Markups Markup cancellations Markdowns (net) Normal spoilage and breakage Sales revenue 5,600 8,000 8,800 2,000 3,500 9,800 397,200 (a) Using the conventional retail method, prepare a schedule computing estimated lower-of-cost-or-market inventory for October 31, 2018. (Round ratios for computational purposes to O decimal places, e.g 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory at lower-of-cost-or-market
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