Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Cost $ 92,000 Retail $ 182,000 Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns 360,000 582,000 9,200 7,200 11,200 16,200 12,200 3,200 4,840 8,200 542,000 10,200 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,200. 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. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional application
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Cost $ 92,000 Retail $ 182,000 Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns 360,000 582,000 9,200 7,200 11,200 16,200 12,200 3,200 4,840 8,200 542,000 10,200 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,200. 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. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional application
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![[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
$ 92,000
Retail
$ 182,000
360,000
582,000
9,200
7,200
11,200
16,200
12,200
3,200
4,840
8,200
542,000
10,200
The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,200.
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.
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Conventional
application](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98a95248-6313-4124-8c48-8cf374831d55%2F4be060eb-52eb-477c-90bd-f8b5d9658abe%2Fdr2pk5m_processed.png&w=3840&q=75)
Transcribed Image Text:[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
$ 92,000
Retail
$ 182,000
360,000
582,000
9,200
7,200
11,200
16,200
12,200
3,200
4,840
8,200
542,000
10,200
The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,200.
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.
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Conventional
application
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