The retail inventory method is used by Uniwide Sales. The recordsof inventory, purchases, and sales for the year 2019 are given below;CostP185,700339,38011,0007,3002,000Beginning InventoryPurchasesRetailP202,000458,000Purchase AllowanceFreight-inDepartmental Transfers-inAdditional MarkupsMarkup CancellationsInventory ShortageSales (including sales of P4,500 whichwere marked down from P6,000)3,00012,0002,5007,000374,000REQUIRED:Compute the cost of the ending inventory using(1)(2)(a)average retail method andFIFO retail method.

Cost to Retail Method Cost to retail which was used for department stores which provides exact…

Inventory Shortage Sales (including sales of P4,500 which were marked down from P6,000) 7,000 374,000 REQUIRED: (a) Compute the cost of the ending inventory using average retail method and FIEO retail method (1) (2)

Inventory Shortage Sales (including sales of P4,500 which were marked down from P6,000) 7,000 374,000 REQUIRED: (a) Compute the cost of the ending inventory using average retail method and FIEO retail method (1) (2)

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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Question

100%

The retail inventory method is used by Uniwide Sales. The records
of inventory, purchases, and sales for the year 2019 are given below;
Cost
P185,700
339,380
11,000
7,300
2,000
Beginning Inventory
Purchases
Retail
P202,000
458,000
Purchase Allowance
Freight-in
Departmental Transfers-in
Additional Markups
Markup Cancellations
Inventory Shortage
Sales (including sales of P4,500 which
were marked down from P6,000)
3,000
12,000
2,500
7,000
374,000
REQUIRED:
Compute the cost of the ending inventory using
(1)
(2)
(a)
average retail method and
FIFO retail method.

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