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 30% discount) Normal spoilage Price Index: Required: January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost $ 168,750 Retail $225,000 Cost Retail 503,000 4,000 633,000 3,650 $ 665,000 $ 1,113,000 5,800 3,700 5,000 5,800 6,100 4,450 10,800 7,500 453,000 20,300 6,000 712,000 20,300 6,400 1.00 1.25 1.25 3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method. Note: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar. Conventional Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail Method
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 30% discount) Normal spoilage Price Index: Required: January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost $ 168,750 Retail $225,000 Cost Retail 503,000 4,000 633,000 3,650 $ 665,000 $ 1,113,000 5,800 3,700 5,000 5,800 6,100 4,450 10,800 7,500 453,000 20,300 6,000 712,000 20,300 6,400 1.00 1.25 1.25 3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method. Note: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar. Conventional Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail Method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 30% discount)
Normal spoilage
Price Index:
Required:
January 1, 2024
December 31, 2024
December 31, 2025
2024
2025
Cost
$ 168,750
Retail
$225,000
Cost
Retail
503,000
4,000
633,000
3,650
$ 665,000
$ 1,113,000
5,800
3,700
5,000
5,800
6,100
4,450
10,800
7,500
453,000
20,300
6,000
712,000
20,300
6,400
1.00
1.25
1.25
3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method.
Note: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar.
Conventional
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail Method
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