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. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Average Cost Retail Method

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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 2
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
1.00
1.25
1.25
Average Cost Retail
Method
5,900
4,600
500,000
24,000
3,500
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.
11,600
7,900
720,000
24,000
6,800
Transcribed Image Text: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 2 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 1.00 1.25 1.25 Average Cost Retail Method 5,900 4,600 500,000 24,000 3,500 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. 11,600 7,900 720,000 24,000 6,800
[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
2024
Cost
$ 159,250
450,000
4,500
7,200
1.00
1.25
1.25
Retail
$ 245,000
631,000
3,550
5,900
4,600
500,000
24,000
3,500
Cost
$ 685,000
4,100
7,000
2025
Retail
$ 918,000
4,500
11,600
7,900
720,000
24,000
6,800
Transcribed Image Text:[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 2024 Cost $ 159,250 450,000 4,500 7,200 1.00 1.25 1.25 Retail $ 245,000 631,000 3,550 5,900 4,600 500,000 24,000 3,500 Cost $ 685,000 4,100 7,000 2025 Retail $ 918,000 4,500 11,600 7,900 720,000 24,000 6,800
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