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: January 1, 2024 December 31, 2024 December 31, 2025 2024 Cost $ 147,000 498,000 4,500 6,000 1.00 1.12 1.25 Retail $ 210,000 Cost 678,000 $ 650,000 4,500 5,950 4,450 458,000 17,500 5,800 3,400 5,000 2025 Required: 2. Estimate the 2024 ending inventory and cost of goods sold using the average cost retal method. Retail $ 904,000 2,000 10,200 7,200 706,000 17,500 6,100
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: January 1, 2024 December 31, 2024 December 31, 2025 2024 Cost $ 147,000 498,000 4,500 6,000 1.00 1.12 1.25 Retail $ 210,000 Cost 678,000 $ 650,000 4,500 5,950 4,450 458,000 17,500 5,800 3,400 5,000 2025 Required: 2. Estimate the 2024 ending inventory and cost of goods sold using the average cost retal method. Retail $ 904,000 2,000 10,200 7,200 706,000 17,500 6,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
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Subject: acounting
![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:
January 1, 2024
December 31, 2024
December 31, 2025
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
2024
Average Cost Retail
Method
Retail
Cost
$147,000 $ 210,000.
498,000
678,000
4,500
4,500
6,000
1.00
1.12
1.25
www
5,950
4,450
458,000
17,500
5,800
***.
Cost
$ 650,000
3,400
5,000
2025
Required:
2. Estimate the 2024 ending inventory and cost of goods sold using the average cost retail method.
Note: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar.
Retail
$ 904,000
2,000
10, 200
7,200
706,000
17,500
6,100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F472621be-5969-4a54-b52e-f83201e6e65c%2Fe68ae2b5-7ac8-412d-9b04-c385da94bf86%2F226bri_processed.jpeg&w=3840&q=75)
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:
January 1, 2024
December 31, 2024
December 31, 2025
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
2024
Average Cost Retail
Method
Retail
Cost
$147,000 $ 210,000.
498,000
678,000
4,500
4,500
6,000
1.00
1.12
1.25
www
5,950
4,450
458,000
17,500
5,800
***.
Cost
$ 650,000
3,400
5,000
2025
Required:
2. Estimate the 2024 ending inventory and cost of goods sold using the average cost retail method.
Note: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar.
Retail
$ 904,000
2,000
10, 200
7,200
706,000
17,500
6,100
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