3.Lychee Company uses the retail method of inventory valuation. The following information is available: Beginning inventory: P186,196 at cost; P302,250 at retail Purchases: P703,740 at cost; P1,120,000 at retail Freight in: P12,400 Purchase discounts: P14,400 Purchase returns: P25,050 at cost; P48,300 at retail Net additional markups – P100,000 Net markdowns – P205,000 Sales revenue – P900,000 What is the estimated cost of the ending inventory using the average retail? a. 258,265 b. 250,866 c. 368,950 d. 250,886
3.Lychee Company uses the retail method of inventory valuation. The following information is available: Beginning inventory: P186,196 at cost; P302,250 at retail Purchases: P703,740 at cost; P1,120,000 at retail Freight in: P12,400 Purchase discounts: P14,400 Purchase returns: P25,050 at cost; P48,300 at retail Net additional markups – P100,000 Net markdowns – P205,000 Sales revenue – P900,000 What is the estimated cost of the ending inventory using the average retail? a. 258,265 b. 250,866 c. 368,950 d. 250,886
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 13E: Retail Inventory Method The following information relates to the retail inventory method used by...
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3.Lychee Company uses the retail method of
Beginning inventory:
P186,196 at cost; P302,250 at retail
Purchases:
P703,740 at cost; P1,120,000 at retail
Freight in: P12,400
Purchase discounts: P14,400
Purchase returns:
P25,050 at cost; P48,300 at retail
Net additional markups – P100,000
Net markdowns – P205,000
Sales revenue – P900,000
What is the estimated cost of the ending inventory using the average retail?
a. 258,265
b. 250,866
c. 368,950
d. 250,886
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