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Instructions: 1. Compute the estimated cost of ending inventory using the conservative approach 2. Compute the estimated cost of ending inventory using the average cost approach 3. Compute the estimated cost of ending inventory using the FIFO approach

Instructions: 1. Compute the estimated cost of ending inventory using the conservative approach 2. Compute the estimated cost of ending inventory using the average cost approach 3. Compute the estimated cost of ending inventory using the FIFO approach

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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STRAIGHT PROBLEMS Problem 11 Determining ending inventory using the retail inventory method Mighty Kingdom Company used the retail inventory method to approximate the ending inventory. Cost Retail 1,200,000 9,000,000 14,700,000 650,000 Beginning Inventory Purchases Freight-in Purchase returns 200,000 300,000 150,000 200,000 500,000 Purchase Allowances Departmental transfer-in Net markup 300,000 300,000 Net markdown 1,000,000 9,500,000 100,000 500,000 600,000 400,000 Sales Sales Discounts Employee Discounts Estimated normal shoplifting losses Estimated normal shrinkage Instructions: 1. Compute the estimated cost of ending inventory using the conservative approach 2. Compute the estimated cost of ending inventory using the average cost approach 3. Compute the estimated cost of ending inventory using the FIFO approach
Transcribed Image Text:STRAIGHT PROBLEMS Problem 11 Determining ending inventory using the retail inventory method Mighty Kingdom Company used the retail inventory method to approximate the ending inventory. Cost Retail 1,200,000 9,000,000 14,700,000 650,000 Beginning Inventory Purchases Freight-in Purchase returns 200,000 300,000 150,000 200,000 500,000 Purchase Allowances Departmental transfer-in Net markup 300,000 300,000 Net markdown 1,000,000 9,500,000 100,000 500,000 600,000 400,000 Sales Sales Discounts Employee Discounts Estimated normal shoplifting losses Estimated normal shrinkage Instructions: 1. Compute the estimated cost of ending inventory using the conservative approach 2. Compute the estimated cost of ending inventory using the average cost approach 3. Compute the estimated cost of ending inventory using the FIFO approach
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