Beginning inventory $ 97,000 $ 187,000 Purchases 363,000 587,000 Freight-in 9,700 Purchase returns 7,700 11,700 Net markups 16,700 Net markdowns 12,700 Normal spoilage 3,700 Abnormal spoilage 5,546 8,700 Sales 547,000 Sales returns 10,700 The company records sales net of employee discounts. Discounts for 2018 totaled $4,700. Required:1. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application.2. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Estimated ending inventory at retail Average cost application=?? my answer was 212200 but is marked wrong coventional application?? Estimated ending inventory at cost Average cost application=?? coventional application?? Estimated cost of goods sold Average cost application=?? coventional application??
Beginning inventory $ 97,000 $ 187,000 Purchases 363,000 587,000 Freight-in 9,700 Purchase returns 7,700 11,700 Net markups 16,700 Net markdowns 12,700 Normal spoilage 3,700 Abnormal spoilage 5,546 8,700 Sales 547,000 Sales returns 10,700 The company records sales net of employee discounts. Discounts for 2018 totaled $4,700. Required:1. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application.2. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Estimated ending inventory at retail Average cost application=?? my answer was 212200 but is marked wrong coventional application?? Estimated ending inventory at cost Average cost application=?? coventional application?? Estimated cost of goods sold Average cost application=?? coventional application??
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| Beginning inventory | $ | 97,000 | $ | 187,000 | ||
| Purchases | 363,000 | 587,000 | ||||
| Freight-in | 9,700 | |||||
| Purchase returns | 7,700 | 11,700 | ||||
| Net markups | 16,700 | |||||
| Net markdowns | 12,700 | |||||
| Normal spoilage | 3,700 | |||||
| Abnormal spoilage | 5,546 | 8,700 | ||||
| Sales | 547,000 | |||||
| Sales returns | 10,700 | |||||
The company records sales net of employee discounts. Discounts for 2018 totaled $4,700.
Required:
1. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application.
2. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application.
Estimated ending inventory at retail
Average cost application=?? my answer was 212200 but is marked wrong
coventional application??
Estimated ending inventory at cost
Average cost application=??
coventional application??
Estimated cost of goods sold
Average cost application=??
coventional application??
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