I need help to solve this problem please explain me step by step including how to get the 206000 answer because I copied from chegg. Also, I checked in bartleby and chegg the same problem but they have wrong answers then please be sure you are giving me the right anwers.Thank you Required information(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:20212022RetailCost$ 90,000 $150,000478,000 730, 0002,5006,960CostRetailBeginning inventoryPurchases$511,000 $760, 0002,2008,000Purchase returns3,5004,000Freight-inNet markupsNet markdownsNet sales to customers8,5004,000650, 00010,0006,000680, 00017,500Sales to employees (net of 30% discount)Normal spoilage14,0005,0006,600Price Index:January 1, 2021December 31, 2021December 31, 20221.001.031.06Required:2. Estimate the 2021 ending inventory and cost of goods sold using the average cost retail method. (Round your cost-to-retailpercentage to 2 decimal places and round your final answers to nearest whole dollar.)X Answer is complete but not entirely correct.Average CostRetail MethodEstimated ending inventory at retail206,000 OEstimated ending inventory at cost2$123,990 XEstimated cost of goods sold$448.470 X

The cost to retail ratio is a financial metric used to evaluate the profitability of a retail…

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: 2021 Cost $ 90,000 $150,000 478,000 730, 000 2,500 6,960 2022 Retail Cost Retail Beginning inventory Purchases $511,000 $760,000 2,200 Purchase returns 3,500 4,000 Freight-in Net markups 8,000 8,500 4,000 650,000 14,000 5,000 10,000 6,000 Net markdowns Net sales to customers Sales to employees (net of 30% discount) Normal spoilage 680, 000 17,500 6,600 Price Index: January 1, 2021 December 31, 2021 December 31, 2022 1.00 1.03 1.06 Required: 2. Estimate the 2021 ending inventory and cost of goods sold using the average cost retail method. (Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar.) O Answer is complete but not entirely correct. Average Cost Retail Method Estimated ending inventory at retail Estimated ending inventory at cost 206,000 123,990 8 448,470 8 Estimated cost of goods sold

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: 2021 Cost $ 90,000 $150,000 478,000 730, 000 2,500 6,960 2022 Retail Cost Retail Beginning inventory Purchases $511,000 $760,000 2,200 Purchase returns 3,500 4,000 Freight-in Net markups 8,000 8,500 4,000 650,000 14,000 5,000 10,000 6,000 Net markdowns Net sales to customers Sales to employees (net of 30% discount) Normal spoilage 680, 000 17,500 6,600 Price Index: January 1, 2021 December 31, 2021 December 31, 2022 1.00 1.03 1.06 Required: 2. Estimate the 2021 ending inventory and cost of goods sold using the average cost retail method. (Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar.) O Answer is complete but not entirely correct. Average Cost Retail Method Estimated ending inventory at retail Estimated ending inventory at cost 206,000 123,990 8 448,470 8 Estimated cost of goods sold

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 13P: Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X,...

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