[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 $ 89,000 352,000 8,900 6,900 4,512 Retail $ 179,000 579,000 10,900 15,900 11,900 2,900 7,900 539,000 9,900 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,900.
[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 $ 89,000 352,000 8,900 6,900 4,512 Retail $ 179,000 579,000 10,900 15,900 11,900 2,900 7,900 539,000 9,900 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,900.
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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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
$ 89,000
352,000
8,900
6,900
4,512
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$ 179,000
579,000
10,900
15,900
The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,900.
Conventional
application
11,900
2,900
7,900
539,000
9,900
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc13d24f5-f750-4b4c-9290-a482f7eab870%2F60139789-a5b2-4410-b774-970e9070ef57%2Fg1tio0a_processed.jpeg&w=3840&q=75)
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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
$ 89,000
352,000
8,900
6,900
4,512
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$ 179,000
579,000
10,900
15,900
The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,900.
Conventional
application
11,900
2,900
7,900
539,000
9,900
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.
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