Required information 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 20% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost $ 105,400 Retail $170,000 Cost Retail 430,000 622,000 $630,000 $ 792,000 2,900 4,000 6.200 2,600 6,000 2,450 5,150 8,600 4,150 6,400 500,000 690,000 14,400 14,400 1,900 5,300 1.00 1.04 1.20 Problem 9-13 (Algo) Part 2 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.
Required information 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 20% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost $ 105,400 Retail $170,000 Cost Retail 430,000 622,000 $630,000 $ 792,000 2,900 4,000 6.200 2,600 6,000 2,450 5,150 8,600 4,150 6,400 500,000 690,000 14,400 14,400 1,900 5,300 1.00 1.04 1.20 Problem 9-13 (Algo) Part 2 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
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 20% discount)
Normal spoilage
Price Index:
January 1, 2024
December 31, 2024
December 31, 2025
2024
2025
Cost
$ 105,400
Retail
$170,000
Cost
Retail
430,000
622,000
$630,000
$ 792,000
2,900
4,000
6.200
2,600
6,000
2,450
5,150
8,600
4,150
6,400
500,000
690,000
14,400
14,400
1,900
5,300
1.00
1.04
1.20
Problem 9-13 (Algo) Part 2
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce5b0d8b-6fb1-4435-a93b-0c89d8a25e4a%2F02860774-ef91-491a-8f5a-05e79c3e8cac%2Fcjasfd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
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 20% discount)
Normal spoilage
Price Index:
January 1, 2024
December 31, 2024
December 31, 2025
2024
2025
Cost
$ 105,400
Retail
$170,000
Cost
Retail
430,000
622,000
$630,000
$ 792,000
2,900
4,000
6.200
2,600
6,000
2,450
5,150
8,600
4,150
6,400
500,000
690,000
14,400
14,400
1,900
5,300
1.00
1.04
1.20
Problem 9-13 (Algo) Part 2
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.
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