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 2011: Cost Retail
Beginning inventory $36,000 $54,000
Purchases 198,000 382,669
Purchase returns 5,700 8,550
Net markups 8,800
Net markdowns 2,500
Normal breakage 6,000
Net sales 267,868
Employee discounts 1,700
Sales are recorded net of employee discounts.
1) Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method (average, LCM)
2) Recompute the cost-to-retail percentage using the average cost method and ignoring LCM considerations.
SubjectsAccounting | Anatomy | Anthropology | Art and Architecture | Astronomy | Auditing | Biochemistry | Biology | Business Law | Business Management | Business Studies | Chemistry | Economics | English | Earth Science | Computer Science | Essay Writing | Finance | Gender Studies | Hospitality Management | HR Management | Humanities | Law | Management | Marketing | Math | Mathematics | Mechanical Engineering | Medical Science | Nursing | Operations Management | Other Engineering | Other Subjects | Philosophy | Physics | Physiology | Political science | Psychology | Sociology | Statistics | Taxation | Web Development | Writing Assignments