Question
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
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:
| 2024 | 2025 | |||
|---|---|---|---|---|
| Cost | Retail | Cost | Retail | |
| Beginning inventory | $ 168,750 | $ 225,000 | ||
| Purchases | 503,000 | 633,000 | $ 665,000 | $ 1,113,000 |
| Purchase returns | 4,000 | 3,650 | 3,700 | 5,800 |
| Freight-in | 5,800 | 5,000 | ||
| Net markups | 6,100 | 10,800 | ||
| Net markdowns | 4,450 | 7,500 | ||
| Net sales to customers | 453,000 | 712,000 | ||
| Sales to employees (net of 30% discount) | 20,300 | 20,300 | ||
| Normal spoilage | 6,000 | 6,400 | ||
| Price Index: | ||||
| January 1, 2024 | 1.00 | |||
| December 31, 2024 | 1.25 | |||
| December 31, 2025 | 1.25 | |||
Required:
3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method.
Note: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar.
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Advances In Accounting Education Teaching And Curriculum Innovations Volume 23
Authors: Thomas G. Calderon
1st Edition
1789733944, 978-1789733945
