Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and
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Question:
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available at the end of the year:
| Cost | Retail | |
|---|---|---|
| Beginning inventory | $ 500,000 | $ 630,000 |
| Net purchases | 960,000 | 1,410,000 |
| Freight-in | 51,100 | |
| Net markups | 68,000 | |
| Net markdowns | 38,000 | |
| Net sales | 1,300,000 |
Estimate ending inventory and cost of goods sold (average cost).
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