Check my work 13 Cost Retail Beginning inventory Purchases Freight-in Purchase r

Question

Check my work 13 Cost Retail Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns $89,000 $179,000 352,000 579,000 8,900 6,900 10,900 15,900 11,900 2,900 7,900 539,000 9,900 0.35 points 4,512 eBook Print References The company records sales net of employee discounts. Discounts for 2018 totaled $3,900 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 Conventional lication application Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold

Explanation / Answer

($) Conventional Cost Retail Beginning Inventory       89,000      1,79,000 Purchases    3,52,000      5,79,000 Less: purchase return        -6,900       -10,900 Freight-in         8,900 abnormal loss        -4,512         -7,900 Add:Markups         15,900 Cost of Goods Available for Sale           4,38,488             7,55,100 cost retail ratio = cost / retail = 438488/755100 Less: mark down       -11,900           0.58 Less: Sales revenue    -5,39,000 Add : sales returns           9,900 Employee discounts granted         -3,900 normal loss         -2,900 Inventory at retail             2,07,300 cost retail ratio 58% Inventory under conventional method             1,20,234 cost of goods sold           3,18,254 Average cost method Cost Retail Beginning Inventory       89,000      1,79,000 Purchases    3,52,000      5,79,000 Less: purchase return        -6,900       -10,900 Freight-in         8,900 abnormal loss        -4,512         -7,900 Add:Markups         15,900 Less: mark down       -11,900 Cost of Goods Available for Sale           4,38,488             7,43,200 cost retail ratio = cost / retail = 438488/743200           0.59 Less: Sales revenue    -5,39,000 Add : sales returns           9,900 Employee discounts granted         -3,900 normal loss         -2,900 Inventory at retail             2,07,300 cost retail ratio 59% Inventory under conventional method             1,22,307 cost of goods sold           3,16,181

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