2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional application
2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional application
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Domestic
![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 2021
are as follows:
Beginning inventory
Purchases
Freight-in
Purchase returns.
Net markups
Net markdowns
Normal spoilage
Abnormal spoilage
Sales
Sales returns
Cost
$ 88,000
356,000
8,800
6,800
4,867
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$178,000
578,000
10,800
15,800
11,800
2,800
7,800
The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,800.
538,000
9,800
Required:
2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional
application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)
Conventional
application](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28ebdfc0-db24-4a8d-b8eb-5f725c5f559e%2F2651a1ce-8ba2-41dc-a7f1-7cf03c98c612%2Fdu6v7x_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 2021
are as follows:
Beginning inventory
Purchases
Freight-in
Purchase returns.
Net markups
Net markdowns
Normal spoilage
Abnormal spoilage
Sales
Sales returns
Cost
$ 88,000
356,000
8,800
6,800
4,867
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$178,000
578,000
10,800
15,800
11,800
2,800
7,800
The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,800.
538,000
9,800
Required:
2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional
application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)
Conventional
application
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