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Problem 9-13 (Algo) Retail inventory method; various applications (LO9-3, 9-4, 9-5) [The following information applies to the questions displayed below.] On January 1, 2021, Pet
Problem 9-13 (Algo) Retail inventory method; various applications (LO9-3, 9-4, 9-5) [The following information applies to the questions displayed below.] On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows: 2022 Retail Cost Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 30% discount) Normal spoilage Price Index: January 1, 2021 December 31, 2021 December 31, 2022 2021 Cost Retail $156,000 $240,000 510,000 752,000 6,200 3,650 6,200 6,250 4,600 500,000 21,000 6,200 $ 725,000 $1,123,000 4,000 6,600 7,000 11,400 7,800 718,000 21,000 3,000 1.00 1.25 1.50 Required: 1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method. 2022 2021 462,800 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold
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