[The following information applies to the questions displayed below.] Sparrow Company uses the retail inventory...
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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 | $ | 84,000 | $ | 174,000 | ||
| Purchases | 370,000 | 574,000 | ||||
| Freight-in | 8,400 | |||||
| Purchase returns | 6,400 | 10,400 | ||||
| Net markups | 15,400 | |||||
| Net markdowns | 11,400 | |||||
| Normal spoilage | 2,400 | |||||
| Abnormal spoilage | 4,467 | 7,400 | ||||
| Sales | 534,000 | |||||
| Sales returns | 9,400 | |||||
The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,400.
Required: 1. Estimate Sparrows ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)
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