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Company A uses retail inventory method to value its inventory. The following information is available for the current year: Cost Retail Beginning Inventory 550,000 1,100,000
Company A uses retail inventory method to value its inventory. The following information is available for the current year:
Cost
Retail
Beginning Inventory
550,000
1,100,000
Purchases
7,900,000
13,150,000
Freight-in
200,000
Purchase returns
300,000
500,000
Purchase allowances
150,000
Departmental transfer-in
200,000
400,000
Net mark-ups
300,000
Net markdowns
450,000
Sales
12,350,000
Sales returns
175,000
Sales discounts
100,000
Employee discounts
300,000
Loss from breakage
25,000
Determined (round off your cost ratio to nearest whole percentage):
- Under average approach, the estimated ending inventory at cost
- Under conventional approach, the estimated cost of goods sold
- Under FIFO approach, the estimated shortage in inventory if physical count is P350,000.
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