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FRUITS Company wants to estimate its ending inventory balance by applying the retail inventory method. For the year ended and as of December 31, 2022, the following amounts were reported: Determine the amount of COGS under retail inventory method – FIFO method:    Determine the amount of COGS under retail inventory method – average method:    Determine the amount of ending inventory under retail inventory method – LCNRV method:    Determine the amount of ending inventory under retail inventory method – FIFO method:   Determine the amount of ending inventory under retail inventory method – average method:    Determine the amount of COGS under retail inventory method – LCNRV method:

FRUITS Company wants to estimate its ending inventory balance by applying the retail inventory method. For the year ended and as of December 31, 2022, the following amounts were reported: Determine the amount of COGS under retail inventory method – FIFO method:    Determine the amount of COGS under retail inventory method – average method:    Determine the amount of ending inventory under retail inventory method – LCNRV method:    Determine the amount of ending inventory under retail inventory method – FIFO method:   Determine the amount of ending inventory under retail inventory method – average method:    Determine the amount of COGS under retail inventory method – LCNRV method:

FINANCIAL ACCOUNTING
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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FRUITS Company wants to estimate its ending inventory balance by applying the retail inventory method. For the year ended and as of December 31, 2022, the following amounts were reported:

Determine the amount of COGS under retail inventory method – FIFO method: 
 
Determine the amount of COGS under retail inventory method – average method: 
 
Determine the amount of ending inventory under retail inventory method – LCNRV method: 
 
Determine the amount of ending inventory under retail inventory method – FIFO method:
 
Determine the amount of ending inventory under retail inventory method – average method: 
 
Determine the amount of COGS under retail inventory method – LCNRV method:
Beg. Inv., at cost Beg. Inv., at retail Gross purchases, cost Gross purchases, retail Purchase returns, cost Transfer-in, retail Transfer-out, retail Normal loss, retail Abnormal loss, cost Abnormal loss, retail P1,300,000 P1,000,000 650,000 2,000,000 5,916,000 100,000 8,870,000 616,000 500,000 800,000 Purchase returns, retail Purchase allow., cost Gross sales 720,000 120,000 8,500,000 550,000 Sales returns Purchase discounts, cost Transfer-in, cost Transfer-out, cost 90,000 Sales discounts 130,000 Sales allowances Freight in 700,000 400,000 490,000 900,000 Employee discounts Markups 250,000 Markdowns 1,450,000 1,700,000 Markdown 250,000 cancellations Markup cancellations Net markups 200,000 Net markdowns 1,200,000 1,500,000 Required: Compute for the estimated ending inventory and the amount of COGS using average method, conventional or LCNRV method and FIFO method.
Transcribed Image Text:Beg. Inv., at cost Beg. Inv., at retail Gross purchases, cost Gross purchases, retail Purchase returns, cost Transfer-in, retail Transfer-out, retail Normal loss, retail Abnormal loss, cost Abnormal loss, retail P1,300,000 P1,000,000 650,000 2,000,000 5,916,000 100,000 8,870,000 616,000 500,000 800,000 Purchase returns, retail Purchase allow., cost Gross sales 720,000 120,000 8,500,000 550,000 Sales returns Purchase discounts, cost Transfer-in, cost Transfer-out, cost 90,000 Sales discounts 130,000 Sales allowances Freight in 700,000 400,000 490,000 900,000 Employee discounts Markups 250,000 Markdowns 1,450,000 1,700,000 Markdown 250,000 cancellations Markup cancellations Net markups 200,000 Net markdowns 1,200,000 1,500,000 Required: Compute for the estimated ending inventory and the amount of COGS using average method, conventional or LCNRV method and FIFO method.
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