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Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows: Cost $ 90,000
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows: Cost $ 90,000 355,000 9,000 7,000 Retail $180,000 580,000 Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns 11,000 16,000 12,000 3,000 8,000 540,000 10,000 4,800 The company records sales net of employee discounts. Discounts for 2018 totaled $4,000. 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. 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application (For all requirements, round Cost-to-retail percentage to two decimal places and final answers to whole dollars.) Average cost application $ 208.000 Conventional application $ 208,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold
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