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 for the quarter ending September 30, 2018:
|
|
Cost
|
Retail
|
|
Beginning inventory
|
$370,000
|
$515,000
|
|
Net purchases
|
890,000
|
1,280,000
|
|
Freight-in
|
54,000
|
|
|
Net markups
|
|
55,000
|
|
Net markdowns
|
|
25,000
|
|
Net sales
|
|
1,235,000
|
Estimate ending inventory and cost of goods sold using the conventional method.