Problem 9-13 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5]

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On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows:

	2021							2022
	Cost			Retail				Cost			Retail
Beginning inventory	$	140,000		$	200,000
Purchases		440,000			594,000			$	680,000		$	854,000
Purchase returns		3,500			4,350				3,200			4,550
Freight-in		6,600							5,000
Net markups					5,450							9,800
Net markdowns					4,300							7,000
Net sales to customers					480,000							702,000
Sales to employees (net of 20% discount)					19,200							19,200
Normal spoilage					2,900							4,000
Price Index:
January 1, 2021		1.00
December 31, 2021		1.25
December 31, 2022		1.25

Problem 9-13 (Algo) Part 1

Required: 1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.