Question
33. The Tam Company uses the retail inventory method and the average cost flow assumption for preparation of its interim reports. Information about Tam's inventory
33. The Tam Company uses the retail inventory method and the average cost flow assumption for preparation of its interim reports. Information about Tam's inventory in the second quarter of 2004 is shown below:
|
| Cost | Retail |
| Beginning inventory | $400 | $ 600 |
| Purchases | 800 | 1,720 |
| Net markups |
| 320 |
| Net markdowns |
| (240) |
| Sales |
| 1,300 |
What is the estimated cost of Tam's inventory on June 30, 2004?
| a. | $550 |
| b. | $480 |
| c. | $428 |
| d. | $520 |
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Financial Reporting And Auditing In Sovereign Operations Technical Guidance Note
Authors: Asian Development Bank
1st Edition
9292698192, 978-9292698195
