Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Cost $ 92,000 Retail $ 182,000 Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns 360,000 582,000 9,200 7,200 11,200 16,200 12,200 3,200 4,840 8,200 542,000 10,200 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,200. .Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventiona pplication. lote: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Cost $ 92,000 Retail $ 182,000 Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns 360,000 582,000 9,200 7,200 11,200 16,200 12,200 3,200 4,840 8,200 542,000 10,200 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,200. .Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventiona pplication. lote: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
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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![[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
$ 92,000
Retail
$ 182,000
360,000
582,000
9,200
7,200
11,200
16,200
12,200
3,200
4,840
8,200
542,000
10,200
The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,200.
2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional
application.
Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
Answer is complete but not entirely correct.
Conventional
application
Estimated ending inventory at retail
$
123,630 ×
Estimated ending inventory at cost
$
449,160 x
Estimated cost of goods sold
$
760,800 ×](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06706b30-ad25-47ba-b158-78302f63db72%2F3b15e437-8f29-46b1-9c21-4d1cc776da4b%2Fhv50mtr_processed.png&w=3840&q=75)
Transcribed Image Text:[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
$ 92,000
Retail
$ 182,000
360,000
582,000
9,200
7,200
11,200
16,200
12,200
3,200
4,840
8,200
542,000
10,200
The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,200.
2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional
application.
Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
Answer is complete but not entirely correct.
Conventional
application
Estimated ending inventory at retail
$
123,630 ×
Estimated ending inventory at cost
$
449,160 x
Estimated cost of goods sold
$
760,800 ×
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