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 2021 are as follows: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 88,000 356,000 8,800 6,800 4,867 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $178,000 578,000 10,800 15,800 11,800 2,800 7,800 The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,800. 538,000 9,800 Required: 2. Estimate Sparrow's 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
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 2021 are as follows: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 88,000 356,000 8,800 6,800 4,867 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $178,000 578,000 10,800 15,800 11,800 2,800 7,800 The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,800. 538,000 9,800 Required: 2. Estimate Sparrow's 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
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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