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, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 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, 2021 December 31, 2021 December 31, 2022 roblem 9-13 (Algo) Part 3 Answer is complete but not entirely correct. Conventional Retail Method Estimated ending inventory at retail Estimated ending inventory at cost Estimated $ $ 2021 950,400 X 725,191 X Cost Retail $105,400 $170,000 430,000 622,000 2,900 4,000 6,200 1.00 1.04 1.20 5,150 4,150 500,000 14,400 1,900 Cost 2022 equired: - Estimate the 2021 ending inventory and cost of goods sold using the conventional retail method. (Round your cost-to-retail ercentage to 2 decimal places and round your final answers to nearest whole dollar.) Retail $630,000 $792,000 2,600 2,450 6,000 8,600 6,400 690,000 14,400 5,300

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail,
and cost indexes for 2021 and 2022 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, 2021
December 31, 2021
December 31, 2022
Problem 9-13 (Algo) Part 3
X Answer is complete but not entirely correct.
Conventional
Retail
Method
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
$
$
$
2021
950,400 X
725,191 X
725,191 x
Cost Retail
$105,400 $170,000
430,000
622,000
4,000
2,900
6,200
1.00
1.04
1.20
5,150
4,150
500,000
14,400
1,900
Cost
2022
Required:
3. Estimate the 2021 ending inventory and cost of goods sold using the conventional retail method. (Round your cost-to-retail
percentage to 2 decimal places and round your final answers to nearest whole dollar.)
Retail
$630,000 $792,000
2,600
2,450
6,000
8,600
6,400
690,000
14,400
5,300
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, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 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, 2021 December 31, 2021 December 31, 2022 Problem 9-13 (Algo) Part 3 X Answer is complete but not entirely correct. Conventional Retail Method Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold $ $ $ 2021 950,400 X 725,191 X 725,191 x Cost Retail $105,400 $170,000 430,000 622,000 4,000 2,900 6,200 1.00 1.04 1.20 5,150 4,150 500,000 14,400 1,900 Cost 2022 Required: 3. Estimate the 2021 ending inventory and cost of goods sold using the conventional retail method. (Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar.) Retail $630,000 $792,000 2,600 2,450 6,000 8,600 6,400 690,000 14,400 5,300
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