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 $ 99,000 359,000 9,900 7,900 5,183 imated ending inventory at retail imated ending inventory at cost imated cost of goods sold Retail $189,000 589,000 11,900 16,900 12,900 3,900 8,900 549,000 10,900 The company records sales net of employee discounts. Employee discounts for 2021 totaled $4,900. uired: stimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost lication. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.) Average cost 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 $ 99,000 359,000 9,900 7,900 5,183 imated ending inventory at retail imated ending inventory at cost imated cost of goods sold Retail $189,000 589,000 11,900 16,900 12,900 3,900 8,900 549,000 10,900 The company records sales net of employee discounts. Employee discounts for 2021 totaled $4,900. uired: stimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost lication. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.) Average cost application
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 2021
are as follows:
Beginning inventory
Purchases
Freight-in
Purchase returns
Net markups
Net markdowns
Normal spoilage
Abnormal spoilage
Sales
Sales returns
Cost
$ 99,000
359,000
9,900
7,900
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
5,183
Retail
$189,000
589,000
11,900
16,900
12,900
3,900
8,900
549,000
10,900
The company records sales net of employee discounts. Employee discounts for 2021 totaled $4,900.
equired:
Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost
pplication. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)
Average cost
application](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c7362b4-811e-48b1-a295-094a04c8c298%2Ff4a3924c-b6f0-4e32-94a5-8e405c184199%2Fqxbvgfi_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 2021
are as follows:
Beginning inventory
Purchases
Freight-in
Purchase returns
Net markups
Net markdowns
Normal spoilage
Abnormal spoilage
Sales
Sales returns
Cost
$ 99,000
359,000
9,900
7,900
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
5,183
Retail
$189,000
589,000
11,900
16,900
12,900
3,900
8,900
549,000
10,900
The company records sales net of employee discounts. Employee discounts for 2021 totaled $4,900.
equired:
Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost
pplication. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)
Average cost
application
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