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Using Average Approach-----Put 0 example (P10,000) You were assigned to test the reasonableness of the inventory account balance as reported by your client, Surety Corp.

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Using Average Approach-----Put "0" example (P10,000) You were assigned to test the reasonableness of the inventory account balance as reported by your client, Surety Corp. The following information is made available by Surety Corp. 's accountant: Cost Retail Beginning inventory 598,400.00 P 1,500,000.00 Purchases 3,048,400.00 5,500,000.00 Freight in 80,000.00 Purchase returns 140,000.00 180,000.00 Mark-ups 600,000.00 Mark-ups cancellations 100,000.00 Mark-downs 1,300,000.00 Mark-downs cancellation 385,000.00 Sales 4,470,000.00 Sales returns 150,000.00 Sales discount 200,000.00 Employee discount 400,000.00 Ending inventory as a result of the physical count conducted on December 31, was at P649,600. What is the amount of estimated inventory shortage, if any, as a result of your test of reasonableness under the following assumed cost formula? (round-off cost percentage to a whole numbers) Your

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