Question
Red Arrow General Store has the following information available for 2018: Cost Retail Sales (net amount charged to customer accounts) 520,000 Discounts (from list price)
Red Arrow General Store has the following information available for 2018:
|
| Cost | Retail |
| Sales (net amount charged to customer accounts) |
| 520,000 |
| Discounts (from list price) to senior citizens |
| 22,000 |
| Sales allowances (account adjustments to please unhappy customers) |
| 10,000 |
| Sales returns |
| 22,000 |
| Purchases recorded gross | 330,000 | 580,000 |
| Purchase returns | 25,000 | 40,000 |
| Purchase discounts taken (gross method) | 11,000 |
|
| Freight in | 13,000 |
|
| Freight out | 43,000 |
|
| Markups |
| 25,000 |
| Markup cancellations |
| 10,000 |
| Markdowns |
| 8,000 |
| Markdown cancellations |
| 2,000 |
| Inventory, January 1, 2018 | 52,000 | 100,000 |
- Calculate the December 31, 2018 inventory using the average method
Conventional method retail calculation:
IFRS simple average calculation:
- FIFO
- LIFO and Inflation adjusted LIFO
Calculate the inventory value using the Dollar Value (inflation adjusted) LIFO method. Assume the price level was 1 on Jan. 1 and 1.04 on Dec. 31, 2018
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Practical Guide To Accountancy
Authors: Ajit Kumar Chattopadhyay, Amalendu Mukhopadhyay
1st Edition
1642874264, 9781642874266
