JFC Corporation values its inventory by using retail method: 4. How much is the ending inventory at cost assuming the company uses FIFO LCM approach?
JFC Corporation values its inventory by using retail method: 4. How much is the ending inventory at cost assuming the company uses FIFO LCM approach?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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JFC Corporation values its inventory by using retail method:
4. How much is the ending inventory at cost assuming the company uses FIFO LCM approach?
![Cost
Retail
Beginning inventory
960,000.00
1,000,000.00
Purchases
1,809,000.00
3,963,750.00
Freight-in
24,000.00
Transfer-in
24,000.00
36,000.00
Transfer-out
(3,000.00)
(4,500.00)
Purchase returns
(36,000.00)
(60,000.00)
Purchase allowances
(18,000.00)
Net markups
36,000.00
Net markdowns
(1,600,000.00)
Sales
(1,140,000.00)
Sales returns
9,600.00
Sales discounts
12,000.00
Employee discounts
(60,000.00)
Abnormal losses
(371,250.00)
Estimated normal shoplifting losses
Estimated normal shrinkage
(72,000.00)
(48,000.00)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d15aa18-28b3-4013-8d13-9ca68a6235b9%2F0d2a0e6e-901d-4997-88c2-7fe56de5176f%2Foa16l2i_processed.png&w=3840&q=75)
Transcribed Image Text:Cost
Retail
Beginning inventory
960,000.00
1,000,000.00
Purchases
1,809,000.00
3,963,750.00
Freight-in
24,000.00
Transfer-in
24,000.00
36,000.00
Transfer-out
(3,000.00)
(4,500.00)
Purchase returns
(36,000.00)
(60,000.00)
Purchase allowances
(18,000.00)
Net markups
36,000.00
Net markdowns
(1,600,000.00)
Sales
(1,140,000.00)
Sales returns
9,600.00
Sales discounts
12,000.00
Employee discounts
(60,000.00)
Abnormal losses
(371,250.00)
Estimated normal shoplifting losses
Estimated normal shrinkage
(72,000.00)
(48,000.00)
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