Beginning inventory $ 97,000 $ 187,000 Purchases 363,000 587,000 Freight-in 9,700 Purchase returns 7,700 11,700 Net markups 16,700 Net markdowns 12,700 Normal spoilage 3,700 Abnormal spoilage 5,546 8,700 Sales 547,000 Sales returns 10,700 The company records sales net of employee discounts. Discounts for 2018 totaled $4,700. 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.2. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Estimated ending inventory at retail Average cost application=?? my answer was 212200 but is marked wrong coventional application?? Estimated ending inventory at cost Average cost application=?? coventional application?? Estimated cost of goods sold Average cost application=?? coventional application??
Beginning inventory $ 97,000 $ 187,000 Purchases 363,000 587,000 Freight-in 9,700 Purchase returns 7,700 11,700 Net markups 16,700 Net markdowns 12,700 Normal spoilage 3,700 Abnormal spoilage 5,546 8,700 Sales 547,000 Sales returns 10,700 The company records sales net of employee discounts. Discounts for 2018 totaled $4,700. 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.2. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Estimated ending inventory at retail Average cost application=?? my answer was 212200 but is marked wrong coventional application?? Estimated ending inventory at cost Average cost application=?? coventional application?? Estimated cost of goods sold Average cost application=?? coventional application??
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 51E: Inventory Costing Methods On June 1, Welding Products Company had a beginning inventory of 210 cases...
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Question
| Beginning inventory | $ | 97,000 | $ | 187,000 | ||
| Purchases | 363,000 | 587,000 | ||||
| Freight-in | 9,700 | |||||
| Purchase returns | 7,700 | 11,700 | ||||
| Net markups | 16,700 | |||||
| Net markdowns | 12,700 | |||||
| Normal spoilage | 3,700 | |||||
| Abnormal spoilage | 5,546 | 8,700 | ||||
| Sales | 547,000 | |||||
| Sales returns | 10,700 | |||||
The company records sales net of employee discounts. Discounts for 2018 totaled $4,700.
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.
2. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application.
Estimated ending inventory at retail
Average cost application=?? my answer was 212200 but is marked wrong
coventional application??
Estimated ending inventory at cost
Average cost application=??
coventional application??
Estimated cost of goods sold
Average cost application=??
coventional application??
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