PROBLEM 40: O00 Company uses the retail inventory method. At the end of the current year,000 Company suffered a fire loss that destroyed most of its inventory. After the fire, onlygoods with a selling price of P125,000, a cost of P100,000 and a net realizable value of P75,000was salvaged. The following information is available prior to the fire:CostP 1,100,000 P 2,200,00015,800,000 26.300,000540,000RetailBeginning inventoryPurchasesFreight inPurchase returnsPurchase allowancesDepartmental transfer inMarkupsCancelation of markdown600,000300,0001,000,000400,000800,000300,000100,000900,000800,000Departmental transfer outMarkdowns350,000Cancelation of markupSalesSales returnsSales discounts50,00024,700,000350,000200,000100,000Sales allowancesEmployee discountsNormal wastage600,0005% of sales33. What is the estimated fire loss if o00 Company appies the conservative retail approach?34. What is the estimated cost of goods sold if O00 Company applies the FIFO retailapproach?35. What is the estimated ending inventory if O00 Company applies the average costapproach

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33. What is the estimated fire loss if 000 Company appies the conservative retail approach? 34. What is the estimated cost of goods sold if 000 Company applies the FIFO retail approach? 35. What is the estimated ending inventory if O00 Company applies the average cost approach

33. What is the estimated fire loss if 000 Company appies the conservative retail approach? 34. What is the estimated cost of goods sold if 000 Company applies the FIFO retail approach? 35. What is the estimated ending inventory if O00 Company applies the average cost approach

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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