Question
The records of Diskount Department Stores Inc. provided the following data for 20X5: Sales (gross) $ 780,000 Sales returns 1,950 Additional markups 8,800 Additional markup
The records of Diskount Department Stores Inc. provided the following data for 20X5:
Sales (gross) | $ | 780,000 | |
Sales returns | 1,950 | ||
Additional markups | 8,800 | ||
Additional markup cancellations | 4,900 | ||
Markdowns | 6,800 | ||
Purchases: | |||
At retail | 830,000 | ||
At cost | 462,500 | ||
Purchase returns: | |||
At retail | 3,900 | ||
At cost | 1,650 | ||
Freight on purchases | 3,650 | ||
Beginning inventory: | |||
At retail | 78,000 | ||
At cost | 44,000 | ||
Markdown cancellations | 2,150 | ||
Required: 1. Estimate the valuation of the ending inventory and cost of goods sold using the gross margin method. Last years gross margin percentage was 52%.
Estimated cost of ending inventory =
Estimated cost of goods sold =
2. Estimate the valuation of the ending inventory and cost of goods sold using the retail sales method, which approximates lower-of-cost-or-NRV valuation. (Round "Cost ratio" to the nearest whole percentage.)
Estimated cost of ending inventory =
Estimated cost of goods sold =
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