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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 9-13 (Algo) Part 2
Required:
2. Estimate the 2021 ending inventory and cost of goods sold using the average cost retail method. (Round your cost-to-retail
percentage to 2 decimal places and round your final answers to nearest whole dollar.)
Average Cost
Retail Method
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Problem 9-13 (Algo) Part 3
Required:
3. Estimate the 2021 ending inventory and cost of goods sold using the conventional retail method. (Round your cost-to-retail
percentage to 2 decimal places and round your final answers to nearest whole dollar.)
Conventional
Retal Method
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
![Required information
Problem 9-13 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5)
[The following information applies to the questions displayed below.]
On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail,
and cost indexes for 2021 and 2022 are as follows:
2021
Cost
2022
Retail
$156,000 $240,000
510,000 752, e00
6,200
6,200
Cost
Retail
Beginning inventory
Purchases
Purchase returns
Freight-in
Net markups
Net markdowns
Net sales to customers
Sales to employees (net of 30% discount)
Normal spoilage
Price Index:
January 1, 2021
December 31, 2021
December 31, 2022
$725,000 $1, 123,000
4,000
7,000
3,650
6,600
6,250
4,600
500, 000
21,000
6,200
11,400
7,800
718,000
21,000
3,000
1.00
1.25
1.50
Problem 9-13 (Algo) Part 1
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Problem 9-13 (Algo) Part 1
Required:
1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.
2021
2022
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd59b8a64-69fe-4eac-9087-1a2fc5594f73%2F89bec177-1aac-46b2-8e9d-3caba424dc2b%2Fo9it59_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 9-13 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5)
[The following information applies to the questions displayed below.]
On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail,
and cost indexes for 2021 and 2022 are as follows:
2021
Cost
2022
Retail
$156,000 $240,000
510,000 752, e00
6,200
6,200
Cost
Retail
Beginning inventory
Purchases
Purchase returns
Freight-in
Net markups
Net markdowns
Net sales to customers
Sales to employees (net of 30% discount)
Normal spoilage
Price Index:
January 1, 2021
December 31, 2021
December 31, 2022
$725,000 $1, 123,000
4,000
7,000
3,650
6,600
6,250
4,600
500, 000
21,000
6,200
11,400
7,800
718,000
21,000
3,000
1.00
1.25
1.50
Problem 9-13 (Algo) Part 1
Reauired:
( Prev
2.
3
4
of 4
Next >
Problem 9-13 (Algo) Part 1
Required:
1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.
2021
2022
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
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