PROBLEM 20

Cayden Company provided the following information:

Inventory, January 1

Cost P350,000

Retail 650,000

Purchases during the year

Cost 2,900,000

Retail 4,800,000

Freight in 230,000

Purchase Returns

Cost 100,000

Retail 175,000

Purchase Discount 210,000

Sales 5,000,000

Sales Discount 115,000

Sales Returns 200,000

Markups 150,000

Markups cancellation 70,000

Markdown 60,000

Estimated normal shrinkage 2% of sales

Shoplifting losses (abnormal) 50,000

Requirements: Compute the ending inventory using the

1. LCNRV approach

2. Average approach

3. FIFO approach