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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 $ 93,000 Retail $ 183,000 Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns 362,000 9,300 7,300 583,000 11,300 16,300 12,300 3,300 4,884 8,300 543,000 10,300 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,300. 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 $ 93,000 Retail $ 183,000 Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns 362,000 9,300 7,300 583,000 11,300 16,300 12,300 3,300 4,884 8,300 543,000 10,300 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,300. 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

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
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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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 $ 93,000 Retail $ 183,000 Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns 362,000 9,300 7,300 583,000 11,300 16,300 12,300 3,300 4,884 8,300 543,000 10,300 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,300. 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
Transcribed Image Text: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 $ 93,000 Retail $ 183,000 Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns 362,000 9,300 7,300 583,000 11,300 16,300 12,300 3,300 4,884 8,300 543,000 10,300 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,300. 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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