Required information [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 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 86,000 363,000 8,600 6,600 2,600 7,600 536,000 9,600 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,600. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 176,000 576,000 4,631 10,600 15,600 11,600 Required: 1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Average cost application
Required information [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 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 86,000 363,000 8,600 6,600 2,600 7,600 536,000 9,600 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,600. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 176,000 576,000 4,631 10,600 15,600 11,600 Required: 1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Average cost application
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[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
2024 are as follows:
Beginning inventory
Purchases
Freight-in
Purchase returns
Net markups
Net markdowns
Normal spoilage.
Abnormal spoilage
Sales
Sales returns
Cost
$ 86,000
363,000
8,600
6,600
4,631
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$ 176,000
576,000
The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,600.
10,600
15,600
11,600
2,600
7,600
536,000
9,600
Required:
1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost
application.
Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
Average cost
application
1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F567e3a3e-d0fb-49e0-903a-334d72aa92be%2F1171a92b-008c-41b6-849b-c7a61cd56a5d%2F6c81u2qwc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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
2024 are as follows:
Beginning inventory
Purchases
Freight-in
Purchase returns
Net markups
Net markdowns
Normal spoilage.
Abnormal spoilage
Sales
Sales returns
Cost
$ 86,000
363,000
8,600
6,600
4,631
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$ 176,000
576,000
The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,600.
10,600
15,600
11,600
2,600
7,600
536,000
9,600
Required:
1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost
application.
Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
Average cost
application
1
Transcribed Image Text:2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional
application.
Note: 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
4
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