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On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024


 

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: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost Retail Cost Retail $ 150,500 $ 215,000 640,000 852,000 $ 735,000 2,700 6,800 5,650 3,500 $ 923,000 5,475 5,000 5,600 10,400 4,450 560,000 20,000 3,100 7,300 708,000 20,000 2,000 1.00 1.25 1.25 Problem 9-13 (Algo) Part 1 Required: 1. Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail method. Note: Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be 12.34%) and final answers to the nearest whole dollar. 2024 2025 Estimated ending inventory at retail $ 474,400 $ 660,025 Estimated ending inventory at cost $ 354,756 $ 354,756 Estimated cost of goods sold $ (579,600) $ 215,000

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