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Required information [The following information applies to the questions displayed below.] On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions
Required information [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 3,400 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 $124,800 $195,000 493,000 692,000 6,000 5,400 5,800 4,300 540,000 16, 100 3,500 $635,000 $1,063,000 3,100 4,200 5,000 9,600 6,900 700,000 16,100 4,000 1.00 1.25 1.25 equired: Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method. 2021 2022 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold
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