Question
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.
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:
Cost | Retail | |||||
Beginning inventory | $ | 92,000 | $ | 182,000 | ||
Purchases | 360,000 | 582,000 | ||||
Freight-in | 9,200 | |||||
Purchase returns | 7,200 | 11,200 | ||||
Net markups | 16,200 | |||||
Net markdowns | 12,200 | |||||
Normal spoilage | 3,200 | |||||
Abnormal spoilage | 4,840 | 8,200 | ||||
Sales | 542,000 | |||||
Sales returns | 10,200 | |||||
The company records sales net of employee discounts. Employee discounts for 2021 totaled $4,200.
Required: 1. Estimate Sparrows 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-
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