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 2021 are as follows: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 88,000 356,000 8,800 6,800 4,867 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $178,000 578,000 10,800 15,800 11,800 2,800 7,800 The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,800. 538,000 9,800 Required: 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (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 2021 are as follows: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 88,000 356,000 8,800 6,800 4,867 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $178,000 578,000 10,800 15,800 11,800 2,800 7,800 The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,800. 538,000 9,800 Required: 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.) Conventional application
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
D
![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 2021
are as follows:
Beginning inventory
Purchases
Freight-in
Purchase returns.
Net markups
Net markdowns
Normal spoilage
Abnormal spoilage
Sales
Sales returns
Cost
$ 88,000
356,000
8,800
6,800
4,867
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$178,000
578,000
10,800
15,800
11,800
2,800
7,800
The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,800.
538,000
9,800
Required:
2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional
application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)
Conventional
application](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa8cfc449-e30d-4ca6-8641-c23bfa6bd4cc%2Fcb86f0b5-17ce-4299-8d47-c6be0cb16f79%2Fzremxl_processed.jpeg&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 2021
are as follows:
Beginning inventory
Purchases
Freight-in
Purchase returns.
Net markups
Net markdowns
Normal spoilage
Abnormal spoilage
Sales
Sales returns
Cost
$ 88,000
356,000
8,800
6,800
4,867
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retail
$178,000
578,000
10,800
15,800
11,800
2,800
7,800
The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,800.
538,000
9,800
Required:
2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional
application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)
Conventional
application
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