[The following information applies to the questions displayed below.] Sparrow Company uses the retail inventory...
70.2K
Verified Solution
Link Copied!
Question
Accounting
[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:
Cost
Retail
Beginning inventory
$
84,000
$
174,000
Purchases
370,000
574,000
Freight-in
8,400
Purchase returns
6,400
10,400
Net markups
15,400
Net markdowns
11,400
Normal spoilage
2,400
Abnormal spoilage
4,467
7,400
Sales
534,000
Sales returns
9,400
The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,400.
Required: 2. Estimate Sparrows ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)
Conventional application
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
