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 25% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost Retail Cost Retail $ 165,000 $220,000 690,000 888,000 4,500 5,150 4,800 $ 680,000 2,000 5,600 $ 1,069,000 4,075 6,600 10,600 4,450 640,000 21,000 3,800 7,400 710,000 21,000 2,000 1.00 1.25 1.25 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 25% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost Retail Cost Retail $ 165,000 $220,000 690,000 888,000 4,500 5,150 4,800 $ 680,000 2,000 5,600 $ 1,069,000 4,075 6,600 10,600 4,450 640,000 21,000 3,800 7,400 710,000 21,000 2,000 1.00 1.25 1.25 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 25% discount)
Normal spoilage
Price Index:
January 1, 2024
December 31, 2024
December 31, 2025
2024
2025
Cost
Retail
Cost
Retail
$ 165,000
$220,000
690,000
888,000
4,500
5,150
4,800
$ 680,000
2,000
5,600
$ 1,069,000
4,075
6,600
10,600
4,450
640,000
21,000
3,800
7,400
710,000
21,000
2,000
1.00
1.25
1.25
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%2F45f085fe-8763-44d4-ae4a-9ffe69e8a056%2F9c119fea-626c-4f3e-b08a-af5ae46da9a1%2Fmtwyf6h_processed.png&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 25% discount)
Normal spoilage
Price Index:
January 1, 2024
December 31, 2024
December 31, 2025
2024
2025
Cost
Retail
Cost
Retail
$ 165,000
$220,000
690,000
888,000
4,500
5,150
4,800
$ 680,000
2,000
5,600
$ 1,069,000
4,075
6,600
10,600
4,450
640,000
21,000
3,800
7,400
710,000
21,000
2,000
1.00
1.25
1.25
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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