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! Required information Problem 9-6 (Algo) Retail inventory method; average cost and conventional [LO9-3, 9-4] [The following information applies to the questions displayed below.]
! Required information Problem 9-6 (Algo) Retail inventory method; average cost and conventional [LO9-3, 9-4] [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 2021 are as follows: Beginning inventory Purchases Freight-in Purchase returns Cost Retail $ 93,000 $183,000 362,000 583,000 9, 300 7,300 11, 300 Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns 16, 300 12, 300 3,300 4,884 8,300 543,000 10, 300 The company records sales net of employee discounts. Employee discounts for 2021 totaled $4,300. Problem 9-6 (Algo) Part 1 Required: 1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Average cost application
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