Compute estimated ending inventory and cost of goods sold


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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Accounting Basics: Compute estimated ending inventory and cost of goods sold
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