Exercise 9-17 (Algo) Conventional and average cost retail methods; employee discounts [LO9-3, 9-4]

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 2021:

		Cost		Retail
Beginning inventory	$	55,000	$	75,000
Purchases		222,000		415,000
Freight-in		22,680
Purchase returns		7,000		9,500
Net markups				7,300
Net markdowns				5,000
Normal breakage				9,500
Net sales				295,000
Employee discounts				1,700

Sales are recorded net of employee discounts.

Exercise 9-17 (Algo) Part 1

Required: 1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.)

Exercise 9-17 (Algo) Conventional and average cost retail methods; employee discounts [LO9-3, 9-4] 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 2021: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal breakage Net sales Employee discounts Cost Retail $ 55,000 $ 75,000 222,000 415,000 22,680 7,000 9,500 7,300 5,000 9,500 295,000 1,700 Sales are recorded net of employee discounts. Exercise 9-17 (Algo) Part 1 Required: 1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Cost Retail Cost-to-Retail Ratio $ $ 75,000 415,000 Beginning inventory Purchases Freight-in Purchase returns Net markups 55,000 222.000 22,680 (7,000) (9,500) 7,300 487,800 (5,000) Net markdowns Goods available for sale 292,680 482,800 Cost-to-retail percentage (conventional retail method) 60.00% Normal breakage 9,500 Net sales: Sales Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold (295,000) (1,700) 195,600 $