San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of October 2021:
Beginning inventory
Net purchases
Net markups
Net markdowns
Net sales
Cost
$45,000
18,580
Retail
$60,000
32,600
2,200
(1,300)
42,000
Required:
Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the information provided. (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.)
Beginning inventory
Net purchases
Net markups
Net markdowns
Goods available for sale
Cost
Retail
Cost-to-Retail
Ratio
$ 45,000 $ 60,000
18,580
32,600
2,200
(1,300)
63,580
93,500
%
42,000
$ 51,500
Cost-to-retail percentage
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
63,580
