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:20212022CostRetailCostRetail$105,400 $170,000430,0002,9006,200Beginning inventoryPurchases622,0004,000$630,000 $792,0002,6006,000Purchase returns2,450Freight-inNet markupsNet markdownsNet sales to customers5,1504,150500,00014,4001,9008,6006,400690,00014,4005,300Sales to employees (net of 20% discount)Normal spoilagePrice Index:January 1, 2021December 31, 2021December 31, 20221.001.041.20Problem 9-13 (Algo) Part 1Required:1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.X Answer is complete but not entirely correct.20212022Estimated ending inventory at retail24351,8002$483,400 9103 0430,0002,9006,200$630,000 $792,0002,6006,000PurchasesPurchase returns622,0004,0002,450Freight-inNet markupsNet markdownsNet sales to customersSales to employees (net of 20% discount)Normal spoilage5,1504,150500,00014,4001,9008,6006,400690,00014,4005,300Price Index:1.00January 1, 2021December 31, 2021December 31, 20221.041.20Problem 9-13 (Algo) Part 1Required:1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.Answer is complete but not entirely correct.202120222$351,800 X $483,400Estimated ending inventory at retailEstimated ending inventory at cost2$342,650 X $645,590502,9832$143,500Estimated cost of goods sold

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Description: 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 transactio

Solution 2021 2022 Cost ($) Retail ($) Cost ($) Retail ($) Beginning Inventory 105,400…

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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 co and cost indexes for 2021 and 2022 are as follows: 2021 2022 Cost Retail Cost Retail $105,400 $170,000 430,000 2,900 6,200 Beginning inventory Purchases 622,000 4,000 $630,000 $792,000 2,600 6,000 Purchase returns 2,450 Freight-in Net markups 8,600 6,400 5,150 4,150 Net markdowns Net sales to customers Sales to employees (net of 20% discount) Normal spoilage 500,000 14,400 1,900 690,000 14,400 5,300 Price Index: January 1, 2021 1.00

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 co and cost indexes for 2021 and 2022 are as follows: 2021 2022 Cost Retail Cost Retail $105,400 $170,000 430,000 2,900 6,200 Beginning inventory Purchases 622,000 4,000 $630,000 $792,000 2,600 6,000 Purchase returns 2,450 Freight-in Net markups 8,600 6,400 5,150 4,150 Net markdowns Net sales to customers Sales to employees (net of 20% discount) Normal spoilage 500,000 14,400 1,900 690,000 14,400 5,300 Price Index: January 1, 2021 1.00

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 5MC: The moving average inventory cost flow assumption is applicable to which of the following inventory...

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( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of ending inventory under LIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of goods sold under FIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
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