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Required information [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 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2024 Average Cost Retail Method Cost Retail $ 108,500 $ 175,000 520,000 805,000 5,000 3,200 4,500 1.00 1.10 1.23 6,150 4,150 670,000 22,500 2,000 Cost $ 635,000 2,700 6,000 2025 Retail $ 800,000 4,425 8,800 6,500 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. 692,000 22,500 5,400

Required information [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 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2024 Average Cost Retail Method Cost Retail $ 108,500 $ 175,000 520,000 805,000 5,000 3,200 4,500 1.00 1.10 1.23 6,150 4,150 670,000 22,500 2,000 Cost $ 635,000 2,700 6,000 2025 Retail $ 800,000 4,425 8,800 6,500 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. 692,000 22,500 5,400

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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.] 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 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2024 Average Cost Retail Method Cost $ 108,500 520,000 3,200 4,500 1.00 1.10 1.23 Retail $ 175,000 805,000 5,000 6,150 4,150 670,000 22,500 2,000 Cost $ 635,000 2,700 6,000 2025 Retail $ 800,000 4,425 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. 8,800 6,500 692,000 22,500 5,400
Transcribed Image Text:Required information [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 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2024 Average Cost Retail Method Cost $ 108,500 520,000 3,200 4,500 1.00 1.10 1.23 Retail $ 175,000 805,000 5,000 6,150 4,150 670,000 22,500 2,000 Cost $ 635,000 2,700 6,000 2025 Retail $ 800,000 4,425 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. 8,800 6,500 692,000 22,500 5,400
Required information [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 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2024 Conventional Retail Method Cost $ 108,500 520,000 3,200 4,500 1.00 1.10 1.23 Retail $ 175,000 805,000 5,000 6,150 4,150 670,000 22,500 2,000 Cost $635,000 2,700 6,000 2025 Retail $ 800,000 4,425 8,800 6,500 Required: 3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method. Note: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar. 692,000 22,500 5,400
Transcribed Image Text:Required information [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 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2024 Conventional Retail Method Cost $ 108,500 520,000 3,200 4,500 1.00 1.10 1.23 Retail $ 175,000 805,000 5,000 6,150 4,150 670,000 22,500 2,000 Cost $635,000 2,700 6,000 2025 Retail $ 800,000 4,425 8,800 6,500 Required: 3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method. Note: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar. 692,000 22,500 5,400
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