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Required information [The following information applies to the questions displayed below.] Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 85,000 352,000 8,500 6,500 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,760 Retail $ 175,000 575,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,500. 10,500 15,500 11,500 2,500 7,500 535,000 9,500 Required: 1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Average cost application

Required information [The following information applies to the questions displayed below.] Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 85,000 352,000 8,500 6,500 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,760 Retail $ 175,000 575,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,500. 10,500 15,500 11,500 2,500 7,500 535,000 9,500 Required: 1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Average cost application

Intermediate Accounting: Reporting And Analysis
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 13E: Retail Inventory Method The following information relates to the retail inventory method used by...
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! Required information [The following information applies to the questions displayed below.] Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $85,000 352,000 8,500 6,500 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,760 Retail $ 175,000 575,000 10,500 15,500 11,500 Average cost application 2,500 7,500 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,500. 535,000 9,500 Required: 1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $85,000 352,000 8,500 6,500 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,760 Retail $ 175,000 575,000 10,500 15,500 11,500 Average cost application 2,500 7,500 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,500. 535,000 9,500 Required: 1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
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