Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold Data for 2024 are as follows Seginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spollage Abnormal spollage Cost $ 85,000 352,000 6,500 4,760 Retall $ 175,000 575,000 10,500 15,500 11,500 2,500 7,500 535,000 9,500 Sales Sales returns The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,500
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold Data for 2024 are as follows Seginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spollage Abnormal spollage Cost $ 85,000 352,000 6,500 4,760 Retall $ 175,000 575,000 10,500 15,500 11,500 2,500 7,500 535,000 9,500 Sales Sales returns The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Abhaliya
Transcribed Image Text:Seginning inventory
Purchases
Freight-in
Purchase returns
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024
are as follows
Net markups
Net markdowns
Normal spollage
Abnormal spoilage
Sales
Sales returns
Cost
$ 85,000
352.000
8,500
6,500
Show Transcribed Text
4,760
J
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Retall
$ 175,000
575,000
The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,500.
$
$
$
10,500
15,500
11,500
2,500
7,500
$35,000
9,500
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.
202,500
119,475 C
314,765
c
Answer is complete but not entirely correct.
Average cost
application
S
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.
Retur
C
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