he inventory and purchases data of Illumina Company for the last quarter of 2023 are as follows Beginning Inventory: At cost - P650,000; At retail - P1,075,000 Purchases during the period: At cost - P2,450,000; At retail - P3,025,000 Freight in - P50,000; Net markup - P400,000; Net markdown - P300,000 Net sales during the period - P3,880,000 Question: If Illumina uses the first-in, first-out basis and ignores the lower of cost and net realizable value rule, what is the ending inventory at estimated cost? a. P320,000 b. P256,000 c. P240,000 d. P224,000
he inventory and purchases data of Illumina Company for the last quarter of 2023 are as follows Beginning Inventory: At cost - P650,000; At retail - P1,075,000 Purchases during the period: At cost - P2,450,000; At retail - P3,025,000 Freight in - P50,000; Net markup - P400,000; Net markdown - P300,000 Net sales during the period - P3,880,000 Question: If Illumina uses the first-in, first-out basis and ignores the lower of cost and net realizable value rule, what is the ending inventory at estimated cost? a. P320,000 b. P256,000 c. P240,000 d. P224,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The inventory and purchases data of Illumina Company for the last quarter of 2023 are as follows
Beginning Inventory: At cost - P650,000; At retail - P1,075,000
Purchases during the period: At cost - P2,450,000; At retail - P3,025,000
Freight in - P50,000; Net markup - P400,000; Net markdown - P300,000
Net sales during the period - P3,880,000
Question:
If Illumina uses the first-in, first-out basis and ignores the lower of cost and net realizable value rule, what is the ending inventory at estimated cost?
If Illumina uses the first-in, first-out basis and ignores the lower of cost and net realizable value rule, what is the ending inventory at estimated cost?
a. P320,000
b. P256,000
c. P240,000
d. P224,000
c. P240,000
d. P224,000
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