At December 31, 2020, the following information was available from HIBISCUS Company's accounting records What is the cost of HIBISCUS Company's inventory at December 31, 2020
At December 31, 2020, the following information was available from HIBISCUS Company's accounting records What is the cost of HIBISCUS Company's inventory at December 31, 2020
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
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 4C
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Question
At December 31, 2020, the following information was available from HIBISCUS Company's accounting records
What is the cost of HIBISCUS Company's inventory at December 31, 2020, under the average method?
![Cost
Retail
Inventory, January 1, 2020
220,500 P
304,500
Purchases
1,234,800
1,732,500
Additional markups
63,000
Goods available for sale
1,455,300
2,100,000
Gross sales for the year totaled P1,659,000. Markdown amounted to P21,000, sales
returns, P20,800 and spoilage, P25,000. Total recorded sales discount (including
employee discounts of P35,000), P105,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60e62e84-ece8-47ac-8991-7ed7933f0edb%2F987f5300-c2fc-43be-bd60-fa0cdccdd37e%2Fxb83kzs_processed.png&w=3840&q=75)
Transcribed Image Text:Cost
Retail
Inventory, January 1, 2020
220,500 P
304,500
Purchases
1,234,800
1,732,500
Additional markups
63,000
Goods available for sale
1,455,300
2,100,000
Gross sales for the year totaled P1,659,000. Markdown amounted to P21,000, sales
returns, P20,800 and spoilage, P25,000. Total recorded sales discount (including
employee discounts of P35,000), P105,000.
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