Required InformationProblem 9-13 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5)[The following information applies to the questions displayed below.]On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail,and cost indexes for 2021 and 2022 are as follows:Beginning inventoryPurchasesPurchase returnsFreight-inNet markupsNet markdownsNet sales to customersSales to employees (net of 25% discount)Normal spoilagePrice Index:January 1, 2021December 31, 2021December 31, 2022Problem 9-13 (Algo) Part 1Estimated ending inventory at retailEstimated ending inventory at costEstimated cost of goods sold202120212022CostRetail$ 96,000 $160,000520,000 803,0002,7003,0004,0001.001.251.256,0004,000670,00012,0003,0002822Cost$600,000 $950,0002,4005,7508,000RetailRequired:1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.8,2006,200680,00012,0004,000

Note Working 2021 2021 2022 2022 Cost Retail Price Cost Retail Price Opening Inventory A…

Required: 1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2021 2022

Required: 1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2021 2022

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 6E: Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows:...

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Question

Required Information
Problem 9-13 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5)
[The following information applies to the questions displayed below.]
On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail,
and cost indexes for 2021 and 2022 are as follows:
Beginning inventory
Purchases
Purchase returns
Freight-in
Net markups
Net markdowns
Net sales to customers
Sales to employees (net of 25% discount)
Normal spoilage
Price Index:
January 1, 2021
December 31, 2021
December 31, 2022
Problem 9-13 (Algo) Part 1
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
2021
2021
2022
Cost
Retail
$ 96,000 $160,000
520,000 803,000
2,700
3,000
4,000
1.00
1.25
1.25
6,000
4,000
670,000
12,000
3,000
2822
Cost
$600,000 $950,000
2,400
5,750
8,000
Retail
Required:
1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.
8,200
6,200
680,000
12,000
4,000

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Required Information Problem 9-13 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5] [The following information applies to the questions displayed below.] On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 25% discount) Normal spoilage Price Index: January 1, 2021 December 31, 2021 December 31, 2022 Problem 9-13 (Algo) Part 2 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2021 Average Cost Retail Method Cost Retail $ 96,000 $160,000 520,000 883,000 2,700 4,000 3,000 1.00 1.25 1.25 6,000 4,000 670,000 12,000 3,000 2022 Cost Retail $600,000 $950,000 2,400 5,750 8,000 Required: 2. Estimate the 2021 ending inventory and cost of goods sold using the average cost…
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