! 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 $ 95,000 Retail $ 185,000 359,000 585,000 9,500 7,500 11,500 16,500 12,500 3,500 4,354 8,500 545,000 10,500 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,500. 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.
! 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 $ 95,000 Retail $ 185,000 359,000 585,000 9,500 7,500 11,500 16,500 12,500 3,500 4,354 8,500 545,000 10,500 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,500. 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.
Chapter10: Inventory
Section: Chapter Questions
Problem 10PA: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,...
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Question
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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
$ 95,000
Retail
$ 185,000
359,000
585,000
9,500
7,500
11,500
16,500
12,500
3,500
4,354
8,500
545,000
10,500
The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,500.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82545f0f-d854-4c9c-8211-1e7b9d5ba864%2Fa0c13ed2-f67c-400b-86f7-ef36276a7b32%2Fsz4xqnr_processed.png&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
$ 95,000
Retail
$ 185,000
359,000
585,000
9,500
7,500
11,500
16,500
12,500
3,500
4,354
8,500
545,000
10,500
The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,500.
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.
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