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Question - San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of October 2016:
CostRetail Beginning inventory $53,000 $68,000
Net purchases 13,755 33,400
Net markups 3,000
Net markdowns 1,700
Net sales 50,000
Required: Estimate the average cost of ending inventory and cost of goods sold for October.
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Estimate the average cost of ending inventory and cost of goods sold for October. Do not approximate LCM.
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