Reference no: EM132659096

Ross Company provided the following data for the current year:

                                         Cost               Retail

Beginning inventory     1,650,000        2,000,000

Net Purchases              4,200,000                  ?

Net Mark Up                800,000

Net Mark Down               200,000

Net Sales                         ?

The entity used the average retail inventory method to estimate ending inventory. It was determined that the average cost of the ending inventory was 1,950,000. If the entity used the FIFO retail method, the cost ratio would have been 60%.

Question 1: What is the amount of net purchase at original retail before mark up and mark down?

Question 2: What amount was reported as net sales?

Question 3: What amount was reported as cost of goods sold?