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:
2. Estimate the 2024 ending inventory and cost of goods sold using the average cost 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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Internal Auditing Principles And Techniques
Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke
2nd Edition
0894133268, 978-0894133268
