Zomino Corporation had the following amounts under retail inventory method:
Beginning inventory – cost 3,600 Purchases – cost 120,000
Purchase returns – cost 6,000 Net mark-ups 18,000
Abnormal shortage – cost 4,000 Net markdowns 2,800
Sales 72,000 Sales returns 1,800
Sales discounts 3,000 Abnormal shortage – retail 5,500
Purchase returns – retails 7,500 Purchases – retail 200,000
Purchase allowance 1,000 Beginning inventory – retail 5,000
How much is the estimated cost of inventory under FIFO?
A. 74,446 B. 73,857 C. 75,474 D. 137,000

:B. 73,857

Use the following information for the next two (2) questions:
The operations of a department of Push-ups Company that uses FIFO retail inventory method are presented below:
Beginning inventory – sales price 2,500,000 Markdown cancellation 180,000
Beginning inventory – cost 1,400,000 Mark-up cancellation 90,000
Purchases – cost 3,600,000 Sales 4,000,000
Purchases – sales price 4,800,000 Employee discount 100,000
Freight in 200,000 Sales returns 50,000
Departmental transfer – credit cost 150,000 Abnormal loss from breakage – sales price 70,000
Departmental transfer – credit sales price 320,000 Abnormal loss from breakage – cost 50,000
7) How much is the estimated cost of ending inventory?
A. 2,107,185 B. 2,080,340 C. 2,950,000 D. 2,360,000
8) How much is the estimated cost of goods sold?
A. 2,892,815 B. 2,919,660 C. 2,640,000 D. 2,050,000

The following information is available from Bulacan Crispy Company's accounting records for the current year:
Purchases 4,700,000
Purchase discounts 150,000
Beginning inventory 1,450,000
Ending inventory 1,650,000
Freight out 400,000
The company gives out sales discounts to long term customers. Sales discounts granted for the year amounted to 250,000. Sales returns increased this year to 2% of sales or 300,000 in value. The Company’s cost of goods sold for the current year is
A. 4,050,000 B. 4,100,000 C. 4,350,000 D. 3,800,000