Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows: Cost Retail Beginning inventory $ 86,000 $ 176,000 Purchases 363,000 576,000 Freight-in 8,600 Purchase returns 6,600 10,600 Net markups 15,600 Net markdowns 11,600 Normal spoilage 2,600 Abnormal spoilage 4,631 7,600 Sales 536,000 Sales returns 9,600 The company records sales net of employee discounts. Discounts for 2018 totaled $3,600. Required: 1. Estimate Sparrowâs ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. 2. Estimate Sparrowâs ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application.
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows: Cost Retail Beginning inventory $ 86,000 $ 176,000 Purchases 363,000 576,000 Freight-in 8,600 Purchase returns 6,600 10,600 Net markups 15,600 Net markdowns 11,600 Normal spoilage 2,600 Abnormal spoilage 4,631 7,600 Sales 536,000 Sales returns 9,600 The company records sales net of employee discounts. Discounts for 2018 totaled $3,600. Required: 1. Estimate Sparrowâs ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. 2. Estimate Sparrowâs ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application.
Related questions
LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March 2018:
| Cost | Retail | |||
| Beginning inventory | $ | 50,000 | $ | 70,000 |
| Purchases | 217,000 | 410,000 | ||
| Freight-in | 10,986 | |||
| Purchase returns | 4,500 | 7,000 | ||
| Net markups | 6,800 | |||
| Net markdowns | 4,500 | |||
| Normal breakage | 7,000 | |||
| Net sales | 290,000 | |||
| Employee discounts | 2,800 | |||
Sales are recorded net of employee discounts.
1. Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.
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2. Recompute the cost-to-retail percentage using the average cost method.
Recompute the cost-to-retail percentage using the average cost method. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34%).)
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Duke Co. uses the retail inventory method to estimate endinginventory and cost of goods sold. Data for the year 2016 is asfollow:
| Cost | retail | |
| Beginning inventory | $140,000 | $280,000 |
| Purchases | 420,000 | 690,000 |
| Freight in | 16,000 | |
| Purchase Returns | 12,000 | 18,000 |
| Net markups | 24,000 | |
| Net markdowns | 36,000 | |
| Normal spiolage | 5,000 | |
| Sales | 700,000 | |
| Sales returns | 20,000 | |
| Employees discounts | 6,000 |
The company records sales net of employee discounts.
Required:
Estimate Duke's ending inventory and cost of goods sold for theyear using the retail inventory method and the followingapplications:
1. Average Cost
2. Conventional
3. LIFO
Duke Co. uses the retail inventory method to estimate endinginventory and cost of goods sold. Data for the year 2016 is asfollow:
| Cost | retail | |
| Beginning inventory | $140,000 | $280,000 |
| Purchases | 420,000 | 690,000 |
| Freight in | 16,000 | |
| Purchase Returns | 12,000 | 18,000 |
| Net markups | 24,000 | |
| Net markdowns | 36,000 | |
| Normal spiolage | 5,000 | |
| Sales | 700,000 | |
| Sales returns | 20,000 | |
| Employees discounts | 6,000 |
The company records sales net of employee discounts.
Required:
Estimate Duke's ending inventory and cost of goods sold for theyear using the retail inventory method and the followingapplications:
1. Average Cost
2. Conventional
3. LIFO
please answer the question completely!! and apply all of thethree methods.
