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Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2018 fiscal year: Cost Retail
Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2018 fiscal year:
Cost | Retail | |||||
Beginning inventory | $ | 310,000 | $ | 580,000 | ||
Net purchases | 711,000 | 1,270,000 | ||||
Freight-in | 15,200 | |||||
Net markups | 34,000 | |||||
Net markdowns | 7,000 | |||||
Normal spoilage | 4,000 | |||||
Net sales | 1,480,000 | |||||
The company records sales to employees net of discounts. These discounts totaled $33,000 for the year. Estimate ending inventory and cost of goods sold using the conventional method.
Cost | Retail | Cost To Retail Ratio | |
Beginning inventory | |||
Plus: Purchases | |||
Freight In | |||
Net markup | |||
Goods available for sale | |||
Less: Net markdowns | |||
Goods available for sale | |||
Cost-to-retail percentage | |||
Less: Normal spoilage | |||
Net sales | |||
Employee discounts | |||
Estimated ending inventory at retail | |||
Estimated ending inventory at cost | |||
Estimated cost of goods sold |
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