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Required information [The following information applies to the questions displayed below.] 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 Cost $ 99,000 359,000 9,900 7,900 5,183 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 189,000 589,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,900. 11,900 16,900 12,900 3,900 8,900 549,000 10,900 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Conventional application

Required information [The following information applies to the questions displayed below.] 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 Cost $ 99,000 359,000 9,900 7,900 5,183 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 189,000 589,000 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,900. 11,900 16,900 12,900 3,900 8,900 549,000 10,900 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Conventional application

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information [The following information applies to the questions displayed below.] 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 Cost $ 99,000 359,000 9,900 7,900 5,183 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 189,000 589,000 11,900 16,900 12,900 3,900 8,900 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,900. Conventional application 549,000 10,900 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] 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 Cost $ 99,000 359,000 9,900 7,900 5,183 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Retail $ 189,000 589,000 11,900 16,900 12,900 3,900 8,900 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,900. Conventional application 549,000 10,900 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
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