Required: 1. Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail method. Note: Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be 12.34%) and final answers to the nearest whole dollar. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold $ $ $ 2024 $ $ $ 2025
Required: 1. Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail method. Note: Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be 12.34%) and final answers to the nearest whole dollar. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold $ $ $ 2024 $ $ $ 2025
Chapter1: Financial Statements And Business Decisions
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![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 25% 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
$
$
$
2024
Cost
Retail
$ 96,000 $ 160,000
520,000
2,700
4.000
803,000
3,000
2025H
1.00
1.25
1.25
6,000
4,000
670,000
12,000
3,000
Cost
$ 600,000
2,400
8,000
Required:
1. Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail method.
Note: Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be 12.34%) and final answers to the
nearest whole dollar.
2025
Retail
$ 950,000
5,750
8,200
6,200
680,000
12,000
4,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc750274a-886a-463d-ad74-98960b5eca5b%2Ff0efadff-56d6-4954-a3d7-fc334f26f5ea%2F9drlzlv_processed.png&w=3840&q=75)
Transcribed Image Text: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 25% 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
$
$
$
2024
Cost
Retail
$ 96,000 $ 160,000
520,000
2,700
4.000
803,000
3,000
2025H
1.00
1.25
1.25
6,000
4,000
670,000
12,000
3,000
Cost
$ 600,000
2,400
8,000
Required:
1. Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail method.
Note: Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be 12.34%) and final answers to the
nearest whole dollar.
2025
Retail
$ 950,000
5,750
8,200
6,200
680,000
12,000
4,000
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