Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold....

 

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Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Problem 9-6 (Algo) Part 1 Cost $93,000 362,000 9,300 7,300 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,884 Retail $ 183,000 583,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,300. 11,300 16,300 12,300 3,300 8,300 543,000 10,300 Required: 1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Average cost application < Prev S 3 4 of 7 Next > Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Problem 9-6 (Algo) Part 1 Cost $93,000 362,000 9,300 7,300 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 4,884 Retail $ 183,000 583,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,300. 11,300 16,300 12,300 3,300 8,300 543,000 10,300 Required: 1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Average cost application < Prev S 3 4 of 7 Next >

Answer rating: 100% (QA)

Here are the steps involved in solving this problem Calculate the costtoretail ratio This ratio is u... View the full answer