On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns 2024 Cost $ 159,250 450,000 4,500 7,200 Retail $ 245,000 631,000 3,550 5,900 4,600 Cost $ 685,000 4,100 7,000 2025 Retail $ 918,000 4,500 11,600 7,900
On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns 2024 Cost $ 159,250 450,000 4,500 7,200 Retail $ 245,000 631,000 3,550 5,900 4,600 Cost $ 685,000 4,100 7,000 2025 Retail $ 918,000 4,500 11,600 7,900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject : Accounting
![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, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at
both cost and retail, and cost indexes for 2024 and 2025 are as follows:
Beginning inventory
Purchases
Purchase returns
Freight-in
Net markups
Net markdowns
Net sales to customers
Sales to employees (net of 20% discount)
Normal spoilage
Price Index:
January 1, 2024
December 31, 2024
December 31, 2025
Problem 9-13 (Algo) Part 3
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
2024
Conventional
Retail Method
Cost
$ 159,250
450,000
4,500
7,200
1.00
1.25
1.25
Retail
$ 245,000
631,000 $ 685,000
3,550
Cost
5,900
4,600
500,000
24,000
3,500
4,100
7,000
2025
Retail
$ 918,000
4,500
Required:
3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method.
Note: Round your cost-to-retall percentage to 2 decimal places and round your final answers to nearest whole dollar.
11,600
7,980
720,000
24,000
6,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc66754-dc05-453a-a4c8-c79196bcb5d1%2F355a437d-2279-41cc-bfb1-9a110032170f%2Fe8r5zu6_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, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at
both cost and retail, and cost indexes for 2024 and 2025 are as follows:
Beginning inventory
Purchases
Purchase returns
Freight-in
Net markups
Net markdowns
Net sales to customers
Sales to employees (net of 20% discount)
Normal spoilage
Price Index:
January 1, 2024
December 31, 2024
December 31, 2025
Problem 9-13 (Algo) Part 3
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
2024
Conventional
Retail Method
Cost
$ 159,250
450,000
4,500
7,200
1.00
1.25
1.25
Retail
$ 245,000
631,000 $ 685,000
3,550
Cost
5,900
4,600
500,000
24,000
3,500
4,100
7,000
2025
Retail
$ 918,000
4,500
Required:
3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method.
Note: Round your cost-to-retall percentage to 2 decimal places and round your final answers to nearest whole dollar.
11,600
7,980
720,000
24,000
6,800
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