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
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbe3e682-0170-4e5e-a448-703bb6b4ca93%2F0ef7e9cc-7177-4804-a5a3-e551f4fd4966%2F2d3nu98_processed.jpeg&w=3840&q=75)
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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