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 $ 90,000 $150,000 478,000 730, 000 2,500 6,960 2022 Retail Cost Retail Beginning inventory Purchases $511,000 $760,000 2,200 Purchase returns 3,500 4,000 Freight-in Net markups 8,000 8,500 4,000 650,000 14,000 5,000 10,000 6,000 Net markdowns Net sales to customers Sales to employees (net of 30% discount) Normal spoilage 680, 000 17,500 6,600 Price Index: January 1, 2021 December 31, 2021 December 31, 2022 1.00 1.03 1.06 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.) O Answer is complete but not entirely correct. Average Cost Retail Method Estimated ending inventory at retail Estimated ending inventory at cost 206,000 123,990 8 448,470 8 Estimated cost of goods sold
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 $ 90,000 $150,000 478,000 730, 000 2,500 6,960 2022 Retail Cost Retail Beginning inventory Purchases $511,000 $760,000 2,200 Purchase returns 3,500 4,000 Freight-in Net markups 8,000 8,500 4,000 650,000 14,000 5,000 10,000 6,000 Net markdowns Net sales to customers Sales to employees (net of 30% discount) Normal spoilage 680, 000 17,500 6,600 Price Index: January 1, 2021 December 31, 2021 December 31, 2022 1.00 1.03 1.06 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.) O Answer is complete but not entirely correct. Average Cost Retail Method Estimated ending inventory at retail Estimated ending inventory at cost 206,000 123,990 8 448,470 8 Estimated cost of goods sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need help to solve this problem please explain me step by step including how to get the 206000 answer because I copied from chegg. Also, I checked in bartleby and chegg the same problem but they have wrong answers then please be sure you are giving me the right anwers.
Thank you
![Required information
(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
2022
Retail
Cost
$ 90,000 $150,000
478,000 730, 000
2,500
6,960
Cost
Retail
Beginning inventory
Purchases
$511,000 $760, 000
2,200
8,000
Purchase returns
3,500
4,000
Freight-in
Net markups
Net markdowns
Net sales to customers
8,500
4,000
650, 000
10,000
6,000
680, 000
17,500
Sales to employees (net of 30% discount)
Normal spoilage
14,000
5,000
6,600
Price Index:
January 1, 2021
December 31, 2021
December 31, 2022
1.00
1.03
1.06
Required:
2. Estimate the 2021 ending inventory and cost of goods sold using the average cost retail method. (Round your cost-to-retail
percentage to 2 decimal places and round your final answers to nearest whole dollar.)
X Answer is complete but not entirely correct.
Average Cost
Retail Method
Estimated ending inventory at retail
206,000 O
Estimated ending inventory at cost
2$
123,990 X
Estimated cost of goods sold
$
448.470 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f61e626-7d33-482f-bf18-423884fdaa73%2Ff6dcf863-f264-4ad3-a1ea-a6d2f5f44fd8%2Fwdyxfr_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
(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
2022
Retail
Cost
$ 90,000 $150,000
478,000 730, 000
2,500
6,960
Cost
Retail
Beginning inventory
Purchases
$511,000 $760, 000
2,200
8,000
Purchase returns
3,500
4,000
Freight-in
Net markups
Net markdowns
Net sales to customers
8,500
4,000
650, 000
10,000
6,000
680, 000
17,500
Sales to employees (net of 30% discount)
Normal spoilage
14,000
5,000
6,600
Price Index:
January 1, 2021
December 31, 2021
December 31, 2022
1.00
1.03
1.06
Required:
2. Estimate the 2021 ending inventory and cost of goods sold using the average cost retail method. (Round your cost-to-retail
percentage to 2 decimal places and round your final answers to nearest whole dollar.)
X Answer is complete but not entirely correct.
Average Cost
Retail Method
Estimated ending inventory at retail
206,000 O
Estimated ending inventory at cost
2$
123,990 X
Estimated cost of goods sold
$
448.470 X
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education