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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 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales sales returns Cost $ 83,000 368,000 8,300 6,300 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,405 Retail $ 173,000 573,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300. Average cost application S 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-retall percentage to 2 decimal places and final answers to the nearest whole dollar amount. 10,300 15,300 11,300 2,300 7,300 533,000 9,300 203,100 124,399

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 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales sales returns Cost $ 83,000 368,000 8,300 6,300 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,405 Retail $ 173,000 573,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300. Average cost application S 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-retall percentage to 2 decimal places and final answers to the nearest whole dollar amount. 10,300 15,300 11,300 2,300 7,300 533,000 9,300 203,100 124,399

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 13E: Retail Inventory Method The following information relates to the retail inventory method used by...
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Find the estimated cost of goods sold

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 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage Abnormal spoilage sales sales returns Cost $ 83,000 368,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 8,300 6,300 4,405 $ $ Retail $ 173,000 573,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300. Average cost application 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-retall percentage to 2 decimal places and final answers to the nearest whole dollar amount. 10,300 15,300 11,300 2,300 7,300 533,000 9,300 203,100 124,399
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 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage Abnormal spoilage sales sales returns Cost $ 83,000 368,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 8,300 6,300 4,405 $ $ Retail $ 173,000 573,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,300. Average cost application 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-retall percentage to 2 decimal places and final answers to the nearest whole dollar amount. 10,300 15,300 11,300 2,300 7,300 533,000 9,300 203,100 124,399
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