Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns $ 87,000 $177,000 359,000 577,000 8,700 6,700 4,240 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,700. 10,700 15,700 11,700 2,700 7,700 537,000 9,700 Required: 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.) Conventional application
Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns $ 87,000 $177,000 359,000 577,000 8,700 6,700 4,240 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,700. 10,700 15,700 11,700 2,700 7,700 537,000 9,700 Required: 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.) Conventional 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 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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