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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 largest departments for the month of March 2016:
CostRetail Beginning inventory$41,000 $61,000 Purchases 208,000 401,000 Freight-in 9,270 Purchase returns 4,500 6,500 Net markups 5,900 Net markdowns 3,600 Normal breakage 6,500 Net sales 281,000 Employee discounts 1,900
Sales are recorded net of employee discounts.
Required: Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.
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