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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
h2
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9462e73b-722e-4a2a-8740-cd33b1d468bd%2F2247109a-0a5d-41b9-91bd-826b24f1aefc%2F0v6d8n6_processed.png&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9462e73b-722e-4a2a-8740-cd33b1d468bd%2F2247109a-0a5d-41b9-91bd-826b24f1aefc%2Fj04oxbt_processed.png&w=3840&q=75)
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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