Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021 are as follows: Cost RetailBeginning inventory $ 12,000 $ 20,000Purchases 102,600 165,000Freight-in 3,480Purchase returns 4,000 7,000Net markups 6,000Net markdowns 3,000Normal spoilage 4,200Net sales 152,000 Required:Estimate the ending inventory and cost of goods sold for 2021, applying the conventional retail method using the information provided.
Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021 are as follows:
Cost Retail
Beginning inventory $ 12,000 $ 20,000
Purchases 102,600 165,000
Freight-in 3,480
Purchase returns 4,000 7,000
Net markups 6,000
Net markdowns 3,000
Normal spoilage 4,200
Net sales 152,000
Required:
Estimate the ending inventory and cost of goods sold for 2021, applying the conventional retail method using the information provided.
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