Exercise $9-14($Algo$)$ Conventional retail method $[$LO$9-4]$

Colonial Corporation uses the retail method to value its inventory. The following information is available for the year:

$\backslash$begin$\{$tabular$\}\{$lrr$\}$

& $\backslash$multicolumn$\{1\}\{$c$\}\{$ Cost $\}$ & $\backslash$multicolumn$\{1\}\{$c$\}\{$ Retail $\}\backslash \backslash$

Beginning inventory & $\backslash (\backslash$$ $370,000\backslash )$ & $\backslash (\backslash$$ $298,000\backslash )\backslash \backslash$

Purchases & $726,000$ & $984,000\backslash \backslash$

Freight$-$in & $26,000$ & $38,000\backslash \backslash$

Net markups & & $5,800\backslash \backslash$

Net markdowns & & $980,000$

$\backslash$end$\{$tabular$\}$

Required:

Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided.

Note: Round ratio calculation to $2$ decimal places $($i$.$e$.,0\mathrm{.}1234$ should be entered as $\backslash (12\mathrm{.}34\backslash \%\backslash ).).$ Enter amounts to be deducted with a minus sign.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & $\backslash$multicolumn$\{2\}\{|$r$|\}\{$Cost$\}$ & $\backslash$multicolumn$\{2\}\{|$r$|\}\{$Retail$\}$ & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Cost$-$to$-$Retail Ratio$\}\backslash \backslash$

$\backslash$hline Beginning inventory & $\backslash$$ & $370,000$ & $\backslash$$ & $298,000$ & & $\backslash \backslash$

$\backslash$hline Purchases & & $726,000$ & & $984,000$ & & $\backslash \backslash$

$\backslash$hline Freight$-$in & & $26,000$ & & $0$ & & $\backslash \backslash$

$\backslash$hline Net markups & & $0$ & & $38,000$ & & $\backslash \backslash$

$\backslash$hline & & & & $1,320,000$ & & $\backslash \backslash$

$\backslash$hline Net markdowns & & & & $\backslash ((5,800)\backslash )$ & & $\backslash \backslash$

$\backslash$hline Goods available for sale & & $1,122,000$ & & $1,314,200$ & & $\backslash \backslash$

$\backslash$hline Cost$-$to$-$retail percentage & & & & & $85\mathrm{.}00$ & $\backslash \%\backslash \backslash$

$\backslash$hline Net sales & & & & $\backslash ((980,000)\backslash )$ & & $\backslash \backslash$

$\backslash$hline Estimated ending inventory at retail & & & $\backslash$$ & $334,200$ & & $\backslash \backslash$

$\backslash$hline Estimated ending inventory at cost & & & & & & $\backslash \backslash$

$\backslash$hline Estimated cost of goods sold & & & & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$