Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for the 2006 are as follows:

The company records sales net of employee discounts. Discounts for 2006 totaled $4,000.

REQUIRED:
Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the following applications:
1. Average Cost
2. Conventional (average,LCM)

Transcribed Image Text:

Cost Retail Beginning inv Purchases Freight in Purchase returns Net markups Net markdowns Normal Spoilage Abnormal spoilage Sales Sales Returns 90000 355000 9000 7000 180000 80000 11000 16000 12000 3000 8000 540000 10000 4800