Required Information [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 $ 83,000 368,000 8,300 6,300 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,405 Retail $ 173,000 573,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300. 10,300 15,300 11,300 2,300 7,300 533,000 9,300 2. Estimate Sparrow's ending Inventory and cost of goods sold for the year using the retall 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. Conventional application
Required Information [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 $ 83,000 368,000 8,300 6,300 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,405 Retail $ 173,000 573,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300. 10,300 15,300 11,300 2,300 7,300 533,000 9,300 2. Estimate Sparrow's ending Inventory and cost of goods sold for the year using the retall 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. Conventional application
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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Question
2. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application.
![Required Information
[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
$ 83,000
368,000
8,300
6,300
4,405
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$ 173,000
573,000
10,300
15,300
11,300
2,300
7,300
The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300.
Conventional
application
533,000
9,300
2. Estimate Sparrow's ending Inventory and cost of goods sold for the year using the retall 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F969dc51c-cfbc-4a88-8223-4a4d6f7856c4%2F24e37919-7e71-4464-b154-968bb2eb5f32%2Fea0zip1q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[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
$ 83,000
368,000
8,300
6,300
4,405
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$ 173,000
573,000
10,300
15,300
11,300
2,300
7,300
The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300.
Conventional
application
533,000
9,300
2. Estimate Sparrow's ending Inventory and cost of goods sold for the year using the retall 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.
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![Required Information
[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
$ 83,000
368,000
8,300
6,300
4,405
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$ 173,000
573,000
10,300
15,300
11,300
The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300.
2,300
7,300
533,000
9,300
Required:
1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retall Inventory method and the average cost
application.
Note: Round Cost-to-retall percentage to 2 decimal places and final answers to the nearest whole dollar amount.
$ 203,100
$
122,510
$
866,685
Answer is complete but not entirely correct.
Average cost
application](https://content.bartleby.com/qna-images/question/969dc51c-cfbc-4a88-8223-4a4d6f7856c4/a97a3468-af8d-4cc7-825c-b3504e9a9434/5ptw8lu_processed.jpeg)
Transcribed Image Text:Required Information
[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
$ 83,000
368,000
8,300
6,300
4,405
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$ 173,000
573,000
10,300
15,300
11,300
The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300.
2,300
7,300
533,000
9,300
Required:
1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retall Inventory method and the average cost
application.
Note: Round Cost-to-retall percentage to 2 decimal places and final answers to the nearest whole dollar amount.
$ 203,100
$
122,510
$
866,685
Answer is complete but not entirely correct.
Average cost
application
Solution
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