Compute estimated ending inventory and cost of goods sold

Reference no: EM131901875

Problem

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:

	Cost	Retail
Beginning inventory	49,000	69,000
Purchases	216,000	409,000
Freight-in	25,920
Purchase returns	4,000	6,500
Net markups		6,700
Net markdowns		4,400
Normal breakage		6,500
Net sales		289,000
Employee discounts		2,700

Sales are recorded net of employee discounts.

Required:

1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.

Recompute the cost-to-retail percentage using the average cost method.

Reference no: EM131901875

Questions Cloud

Identify the impact of your contributions to self : Write a paper of 1,250-1,500 words that presents your complete personal model of leadership. The 2 parts involved in creating your personal model of leadership.

What is bad debt expense for ledo inc : Ledo Inc. had a 1/1/18 balance in the Allowance for Doubtful Accounts of $20,000. During 2018, it wrote off $12, 600. What is Bad Debt Expense for 2018?

Why in the absence of government and foreign sectors : Why, in the absence of government and foreign sectors, are saving and investment always equal? How does this change when the government and foreign sectors.

How does the concept of operating leverage impact : How does the concept of operating leverage impact a firm's decision to EITHER employ a small fleet of its own trucks and use U-Haul rentals.

Compute estimated ending inventory and cost of goods sold : Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.

Write a paper summarizing agile development : Write a paper summarizing agile development versus traditional waterfall development. What are the positives and negatives of each approach?

Intermediate range of the aggregate supply curve : Also assume the economy is operating on the intermediate range of the aggregate supply curve, what would happen to the aggregate demand

What is the coupon rate of the bond : What is the coupon rate of the bond?If the interest rate you can earn for similar risk is 3%, what should be the price of the bond?

General theory of employment : In 1936, Keynes published The General Theory of Employment, Interest, and Money, which many economists agree constructed the fundamentals

User Account

All Pages