Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 90,000 355,000 9,000 7,000 4,800 Retail $180,000 580,000 11,000 16,000 12,000 3,000 8,000 540,000 10,000 The company records sales net of employee discounts. Discounts for 2018 totaled $4,000. 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.
Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 90,000 355,000 9,000 7,000 4,800 Retail $180,000 580,000 11,000 16,000 12,000 3,000 8,000 540,000 10,000 The company records sales net of employee discounts. Discounts for 2018 totaled $4,000. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Beginning inventory
Purchases
Freight-in
Purchase returns.
Mot
Net markups
Net markdowns
Normal spoilage
Abnormal spoilage
Sales
Sales returns.
Cost
$ 90,000
355,000
9,000
7,000
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
4,800
Retail
$180,000
580,000
11,000
16,000
12,000
3,000
8,000
540,000
10,000
The company records sales net of employee discounts. Discounts for 2018 totaled $4,000.
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.
(For all requirements, round Cost-to-retail percentage to two decimal places and final answers to whole dollars.)
Average cost Conventional
application application
$
$
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