Required: 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional application
Required: 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional application
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[The following information applies to the questions displayed below.]
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021
are as follows:
Beginning
inventory
Purchases
Freight-in
Purchase
returns
Net markups
Net markdowns
Normal
spoilage
Abnormal
spoilage
Sales
Sales returns
Cost Retail
$ 84,000
Estimated
370,000
8,400
6,400
4,467
ventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$ 174,000
574,000
10,400
15,400
11,400
2,400
7,400
The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,400.
Required:
2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the
conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole
dollar amount.)
534,000
9,400
Conventional application](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff52fff1c-fcd6-4b93-93ac-ca1e74bff025%2F747eb1d8-ff45-4e77-8e10-59d89114deb1%2Fhbosyzs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021
are as follows:
Beginning
inventory
Purchases
Freight-in
Purchase
returns
Net markups
Net markdowns
Normal
spoilage
Abnormal
spoilage
Sales
Sales returns
Cost Retail
$ 84,000
Estimated
370,000
8,400
6,400
4,467
ventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$ 174,000
574,000
10,400
15,400
11,400
2,400
7,400
The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,400.
Required:
2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the
conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole
dollar amount.)
534,000
9,400
Conventional application
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