Crosby Company owns a chain of hardware stores throughout the state. The company 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 three months ending March 31, 2021:

Cost Retail
Beginning inventory $ 340,000 $ 384,000
Net purchases 777,000 1,040,000
Net markups 15,000
Net markdowns 5,000
Net sales 1,005,000

Required:
Estimate the LIFO cost of ending inventory and cost of goods sold for the three months ending March 31, 20121 Assume stable retail prices during the period.

Estimated ending inventory at retail                 $429000

Estimated cost of goods sold                           $699,700

Explanation:

                                                      Cost                Retail

Beginning inventory                $340,000          $384,000

Plus: Net Purchases                $777,000           $1,040,000

Net Markups                                                       $15,000

Less : Net Markdowns                                       ($5,000)

Goods available for sale        

excluding business inventory $777,000          $1,050,000

Cost to retail percentage $777,000 / $1,050,000 = 74%

Goods available for sale         $1,117,000          $1,434,000

Less : Net Sales                                                 ($1,005,000)

Estimated ending inventory at retail                 $429000

Beginning inventory              $340,000           $384,000

Current periods layer            $45000 * 74% = $33,300

Total                                       $385,000            $417,300

Estimated cost of goods sold = $1,117,000 - $417,300

= $699,700

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know