2. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the conventional 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 2024are as follows:Beginning inventoryPurchasesFreight-inPurchase returnsNet markupsNet markdownsNormal spoilageAbnormal spoilageSalessales returnsCost$ 83,000368,0008,3006,3004,405Estimated ending inventory at retailEstimated ending inventory at costEstimated cost of goods soldRetail$ 173,000573,00010,30015,30011,3002,3007,300The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300.Conventionalapplication533,0009,3002. Estimate Sparrow's ending Inventory and cost of goods sold for the year using the retall Inventory method and the conventionalapplication.Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.

VALUATION OF INVENTORY Inventory Valuation is a Method of Calculation of Value of Inventory at the…

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 $ 83,000 368,000 8,300 6,300 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,405 Retail $ 173,000 573,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300. 10,300 15,300 11,300 2,300 7,300 533,000 9,300 2. Estimate Sparrow's ending Inventory and cost of goods sold for the year using the retall 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. Conventional 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 $ 83,000 368,000 8,300 6,300 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,405 Retail $ 173,000 573,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300. 10,300 15,300 11,300 2,300 7,300 533,000 9,300 2. Estimate Sparrow's ending Inventory and cost of goods sold for the year using the retall 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. Conventional application

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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DETERMINING THE BEGINNING AND ENDING INVENTORY FROM A PARTI ALSPREADSHEET: PERIODIC INVENTORY SYSTEM From the following partial spreadsheet, indicate the dollar amount of beginning and ending merchandise inventory to be used to compute cost of goods sold.
Sheffield Corp. markets CDs of numerous performing artists. At the beginning of March, Sheffield had in beginning inventory 2,500 CDs with a unit cost of $8. During March, Sheffield made the following purchases of CDs. March 5. March 13 1,900 @ 3,500 @ $9 $10 March 21 March 26 5,200 @ $11 $12 1,900 @ During March 11,500 units were sold. Sheffield uses a periodic inventory system.
s Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes. LIFO inventory LIFO cost of goods sold FIFO inventory FIFO cost of goods sold i Current assets (using LIFO) Current assets (using FIFO) Current liabilities 110 645 180 180 170 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. Year 2 $ 160 740 240 660 220 300 200 Current rabo Inventory tumover Days' sales in inventory (a) Compute its current ratio, Inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Denominator Current ratio Inventory turnover have sales in invandrn Year 1 $ 110 680 Numerator (b) Computa its current ratio, inventory turnover, and days' sales in inventory for Year 2 uning FIFO numbers. Denominator Ratio Numerator Ratio
Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
Jenbright Incorporated adopted the dollar-value LIFO method last year. Last year's ending inventory was $53,700. The ending inventory for the current year at year-end (FIIFO) costs is $98,000 and on a dollar-value LIFO basis is $76,520. Based on this information, prepare the journal entry required to adjust Jenbright's ending inventory from a FIFO to a dollar-value LIFO basis. Prepare the journal entry required to adjust Jenbright's ending inventory from a FIFO to a dollar-value LIFO basis. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the adjusting entry for the current year. Account Year-end
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