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On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at...

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Accounting

On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows:

2021 2022
Cost Retail Cost Retail
Beginning inventory $ 111,600 $ 180,000
Purchases 488,000 685,000 $ 640,000 $ 808,000
Purchase returns 3,100 4,000 2,800 6,400
Freight-in 6,500 6,000
Net markups 5,650 9,000
Net markdowns 4,150 6,600
Net sales to customers 525,000 645,000
Sales to employees (net of 30% discount) 14,000 14,000
Normal spoilage 1,600 2,300
Price Index:
1-Jan-21 1
31-Dec-21 1.2
31-Dec-22 1.25

Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.

2021 2022
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated costs of goods sold

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