Lucas Co. operates a ready-to-wear (RTW) department store in downtown Manila. Because of the observable pattern between its cost and retail price, Lucas Co. used retail inventory method of estimating its inventory for interim reporting as of and for the 3 months period ending 30 September 2020. The records of Lucas Co. shows the following:

Beginning inventory at cost

P85,000

Beginning inventory at retail

106,250

Net purchases at cost

95,628

Net purchases at retail

139,880

Net mark up

25,000

Net mark down

5,500

Net sales

60,000

Sales discount

3,000

Sales returns

4,000

Sales allowance

2,000

Employee discount

5,000

Theft and shrinkage (normal)

1,500

1. Using FIFO retail inventory method, Lucas Co.'s ending inventory as of 30 September 2020is
2. P123,428
3. P116,478
4. P132,428
5. P114,678

Problem 5

Hunter Co. is a calendar-year retailer.Its year-end physical count of inventory on hand did not consider the effects of the following transactions:

• Goods with a cost of P50,000 were shipped by Hunter FOB shipping point on December 30 and were tendered to and accepted by the buyer on January 4.
• Goods with a cost of P40,000 were shipped FOB destination by a vendor on December 30 and were tendered to and accepted by Hunter on January 4.
• Goods were sold on the installment basis by Hunter.Installment receivables representing sales of goods with a cost of P30,000 were reported at year-end.Hunter retains title to such goods until full payment is made.
• Goods with a cost of P20,000 were held on consignment for a vendor. These goods were excluded from the count although they were sold in January.

1. If inventory based solely on the physical count of items on hand equaled P1 million.Hunter should report inventory at year-end of____________