Presented below is information pertaining to ABC Co.: Cost RetailInventory, January 1 21,750 35,000Purchases 138,250 200,750Freight-In 5,000 -Purchase discounts 1,250 -Purchase returns 13,000 21,500Departmental Transfers-In (Debit) 2,500 3,750Departmental Transfers-Out (Credit) 2,000 3,000Markups 15,000Markup cancellations 5,000Markdowns 30,000Markdown cancellations 7,500Abnormal spoilage 12,500 17,500Sales 109,500Sales returns 6,250Sales discounts
Presented below is information pertaining to ABC Co.:
Cost Retail
Inventory, January 1 21,750 35,000
Purchases 138,250 200,750
Freight-In 5,000 -
Purchase discounts 1,250 -
Purchase returns 13,000 21,500
Departmental Transfers-In (Debit) 2,500 3,750
Departmental Transfers-Out (Credit) 2,000 3,000
Markups 15,000
Markup cancellations 5,000
Markdowns 30,000
Markdown cancellations 7,500
Abnormal spoilage 12,500 17,500
Sales 109,500
Sales returns 6,250
Sales discounts 2,500
Employee discounts 1,250
Normal spoilage (shrinkage and breakages) 500
1. How much is the ending inventory using the Average cost method?
2. How much is the ending inventory using the FIFO cost method?
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