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Problem 9-6(Algo) Retail inventory method; average cost and conventional [LO9-3,9-4] Skip to question...

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Accounting

Problem 9-6(Algo) Retail inventory method; average cost and conventional [LO9-3,9-4]
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[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 $ 89,000 $ 179,000
Purchases 352,000579,000
Freight-in 8,900
Purchase returns 6,90010,900
Net markups 15,900
Net markdowns 11,900
Normal spoilage 2,900
Abnormal spoilage 4,5127,900
Sales 539,000
Sales returns 9,900
The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,900.
Problem 9-6(Algo) Part 2
Required:
2. Estimate Sparrows ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)

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