Saved He The records of Diskount Department Stores Inc. provided the following data for 20x5:...
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Saved He The records of Diskount Department Stores Inc. provided the following data for 20x5: $820,000 Sales (gross) Sales returns Additional markups Additional markup cancellations Markdowns Purchases: 2,050 9,200 5,100 7,200 At retail 870,000 487,500 At cost Purchase returns: At retail At cost Freight on purchases Beginning inventory: At retail At cost Markdown cancellations 4,100 1750 3,750 82,000 46,000 2.250 Required: 1. Estimate the valuation of the ending Inventory and cost of goods sold using the gross margin method. Last year's gross margin percentage was 52%. Estimated cost of ending inventory Estimated cost of goods sold 2. Estimate the valuation of the ending inventory and cost of goods sold using the retail sales method, which approximates lower-of- cost-or-NRV valuation. (Round "Cost ratio" to the nearest whole percentage.) Estimated cost of ending inventory Estimated cost of goods sold 3. Which method is likely to be more accurate? Retail sales method Gross margin method
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