On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both...

 

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On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 25% discount) Price Index: Normal spoilage January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost $ 162,500 Retail $ 250,000 Cost Retail 800,000 1,084,000 7,000 12,150 12,500 $680,000 2,000 2,000 $ 1,063,000 4,300 6,900 11,800 4,750 8,000 950,000 722,000 22,500 22,500 4,200 6,900 1.00 1.25 1.25 Required: 3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method. Note: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional Retail Method On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 25% discount) Price Index: Normal spoilage January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost $ 162,500 Retail $ 250,000 Cost Retail 800,000 1,084,000 7,000 12,150 12,500 $680,000 2,000 2,000 $ 1,063,000 4,300 6,900 11,800 4,750 8,000 950,000 722,000 22,500 22,500 4,200 6,900 1.00 1.25 1.25 Required: 3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method. Note: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional Retail Method