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On January 1, 2024, ?Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and...

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Accounting

On January 1, 2024, ?Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 ?and 2025 ?are as follows:

 2024 2025

Cost Retail Cost Retail

Beginning inventory $ 90,000 ?$ 150,000 

Purchases 478,000 730,000 ?$ 511,000 ?$ 760,000

Purchase returns 2,500 3,500 2,200 4,000

Freight-in 6,960   8,000 

Net markups 8,500   10,000

Net markdowns 4,000   6,000

Net sales to customers 650,000   680,000

Sales to employees (net of 30% ?discount)   14,000   17,500

Normal spoilage 5,000   6,600

Price Index:

January 1, 2024 1.00 

December 31, 2024 1.03 

December 31, 2025 1.06 

Problem 9-13 (Static) ?Part 1

Required:

1. ?Estimate the 2024 ?and 2025 ?ending inventory and cost of goods sold using the dollar-value LIFO retail method.

Note: Round your cost-to-retail percentage calculation to 2 ?decimal places (i.e., 0.1234 ?should be 12.34%) ?and final answers to the nearest whole dollar.

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