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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 $ 89,000 352,000 8,900 6,900 4,512 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,900. $ $ $ Retail $ 179,000 579,000 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. 10,900 15,900 11,900 2,900 7,900 539,000 9,900 Answer is complete but not entirely correct. Conventional application 207,300 120,441 X 318,047 X

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 $ 89,000 352,000 8,900 6,900 4,512 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,900. $ $ $ Retail $ 179,000 579,000 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. 10,900 15,900 11,900 2,900 7,900 539,000 9,900 Answer is complete but not entirely correct. Conventional application 207,300 120,441 X 318,047 X

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.] 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 $ 89,000 352,000 8,900 6,900 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,512 $ $ $ The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,900. Retail $ 179,000 579,000 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. 10,900 15,900 11,900 2,900 7,900 539,000 9,900 Answer is complete but not entirely correct. Conventional application 207,300 120,441 X 318,047 X
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 $ 89,000 352,000 8,900 6,900 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,512 $ $ $ The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,900. Retail $ 179,000 579,000 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. 10,900 15,900 11,900 2,900 7,900 539,000 9,900 Answer is complete but not entirely correct. Conventional application 207,300 120,441 X 318,047 X
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