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2. Estimate the 2016 ending inventory and cost of goods sold using the average cost method. (Round your cost-to-retail percentage calculation to 2 decimal places.) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 3. Estimate the 2016 ending inventory and cost of goods sold using the conventional retail method. (Round your cost-to-retail percentage calculation to 2 decimal places.) Estimated ending inventory at retail Estimated ending inventory at

2. Estimate the 2016 ending inventory and cost of goods sold using the average cost method. (Round your cost-to-retail percentage calculation to 2 decimal places.) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 3. Estimate the 2016 ending inventory and cost of goods sold using the conventional retail method. (Round your cost-to-retail percentage calculation to 2 decimal places.) Estimated ending inventory at retail Estimated ending inventory at

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Estimate the 2016 ending inventory and cost of goods sold using the average cost method. (Round your cost-to-retail percentage calculation to 2 decimal places.) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 3. Estimate the 2016 ending inventory and cost of goods sold using the conventional retail method. (Round your cost-to-retail percentage calculation to 2 decimal places.) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold
Transcribed Image Text:2. Estimate the 2016 ending inventory and cost of goods sold using the average cost method. (Round your cost-to-retail percentage calculation to 2 decimal places.) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 3. Estimate the 2016 ending inventory and cost of goods sold using the conventional retail method. (Round your cost-to-retail percentage calculation to 2 decimal places.) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold
On January 1, 2016, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Normal spoilage Price Index: January 1, 2016 December 31, 2016 December 31, 2017 2016 Cost Retail Cost Retail $159,250 $245,000 450,000 631,000 $685,000 $918,000 3,550 4,500 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,500 7,200 1.00 1.25 1.25 5,900 4,600 500,000 24,000 3,500 2017 2016 4,100 7,000 Required: 1. Estimate the 2016 and 2017 ending inventory and cost of goods sold using the dollar-value LIFO retail method. 2017 11,600 7,900 720,000 24,000 6,800
Transcribed Image Text:On January 1, 2016, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Normal spoilage Price Index: January 1, 2016 December 31, 2016 December 31, 2017 2016 Cost Retail Cost Retail $159,250 $245,000 450,000 631,000 $685,000 $918,000 3,550 4,500 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,500 7,200 1.00 1.25 1.25 5,900 4,600 500,000 24,000 3,500 2017 2016 4,100 7,000 Required: 1. Estimate the 2016 and 2017 ending inventory and cost of goods sold using the dollar-value LIFO retail method. 2017 11,600 7,900 720,000 24,000 6,800
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