The estimated ending inventory = $92,091.634
The estimated cost of goods sold for 2024 = $121,408.366
<h3>
What is Ending inventory?</h3>
- The entire worth of the items you have in stock for sale at the conclusion of an accounting period, such as your fiscal year, is known as ending inventory.
- It is an inventory accounting technique that aids retailers in precise stock checks, financing applications, and net income benchmarking.
<h3> Data and Calculations of Brunswick Hat Company:</h3>
Cost Retail
Beginning inventory $ 84,000 $ 141,000
Net purchases 129,500 264,000
Net markups 5,000
Net markdowns (10,000)
Goods available 213,500 420,000
Net sales 229,000
Ending inventory at retail price 191,000
Ending inventory
at cost $92,091.634
Cost of goods sold $121,408.366
Retail price index, 12/31/2024 1.20
<h3>Calculation of estimated ending inventory and cost of goods sold :</h3>
Base year cost to retail price % = $84,000/$141,000 = 59%
2024 cost to retail price % = $129,500/$264,000 = 49%
Ending inventory at cost
= ($191,000/1.20)
= $159,166.6
=$141,000 x 59% = $83,190
= $18,166.6 x 49% = $8,901.634
= $92,091.634
Hence, the estimated ending inventory and cost of goods sold for 2024 are $92,091.634 and $121,408.366 respectively.
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