Required:

1. Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail method.(Calculate the estimated ending inventory at retail, estimated ending inventory at cost, and estimated cost of goods sold)

2. Estimate the 2024 ending inventory and cost of goods sold using the average cost retail method. (Calculate the estimated ending inventory at retail, estimated ending inventory at cost, and estimated cost of goods sold)

3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method. (Calculate the estimated ending inventory at retail, estimated ending inventory at cost, and estimated cost of goods sold)

 

[The following information applies to the questions displayed below.] 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 30% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 2024 Cost $ 124,800 493,000 3,400 5,400 1.00 1.25 1.25 Retail $ 195,000 692,000 6,000 5,800 4,300 540,000 16,100 3,500 Cost $ 635,000 3,100 5,000 2025 Retail $ 1,063,000 4,200 9,600 6,900 700,000 16,100 4,000