Adams Corporation 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 September 2013
Adams Corporation 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 September 2013:
Cost Retail
Beginning inventory $ 21,000 $ 35,000
Net purchases 10,500 ?
Net markups 4,000
Net markdowns 1,000
Net sales ?
The company used the average cost flow method and estimated inventory at the end of September to be $17,437.50. If the company had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%.
Required:
Compute net purchases at retail and net sales for the month of September.
