Diane Company showed the following information on December 31,2014: Cost Retail Inventory, January 1 560,000 1,400,000 Sales 10,000,000 Purchases 4,960,000 10,320,000 Freight in 150,000 Markup 1,000,000 Markup cancelation 120,000 Markdown 500,000 Markdown cancelation 100,000 Estimated normal shrinkage is 2.5% of sales. Diane used the average cost retail inventory method in estimating the value of inventory. What is the estimated cost of inventory on December 31,2014? 460,000 C. 897,000 877,500 D. 990,000

Diane Company showed the following information on December 31,2014: Cost Retail Inventory, January 1 560,000 1,400,000 Sales 10,000,000 Purchases 4,960,000 10,320,000 Freight in 150,000 Markup 1,000,000 Markup cancelation 120,000 Markdown 500,000 Markdown cancelation 100,000 Estimated normal shrinkage is 2.5% of sales. Diane used the average cost retail inventory method in estimating the value of inventory. What is the estimated cost of inventory on December 31,2014? 460,000 C. 897,000 877,500 D. 990,000

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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I have been over the perpetual inventory using weighted average and I still can't seem to grasp the concept of how to do it.