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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 Beginning inventory 83,000
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows Beginning inventory 83,000 $173,000 Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns 368,000 573,000 8,300 8 6,300. 10,300 15,300 11,300 2,300 4,405 7,300 533,000 9,300 The company records sales net of employee discounts. Discounts for 2018 totaled $3,300 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 pleces and final answers to whole dollars) Average cost Conventional
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