Problem 1 (Retail Method- Average) ABC Co. uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the inventory computation at June 30, 20X1 are as follows: Cost Retail Inventory, Jan. 01 P 820,000 P 1,262,800 Net Purchases 2,280,000 3,607,200 Net mark-ups 450,000 Net markdowns 320,000 Sales 4,350,000 Sales Returns 300,000 Employee discount 100,000 Sales discount 80,000 Normal shrinkage 50,000 What is the estimated cost of June 30, 20X1 inventory using the average approach?
Problem 1 (Retail Method- Average) ABC Co. uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the inventory computation at June 30, 20X1 are as follows:
Cost Retail Inventory, Jan. 01 P 820,000 P 1,262,800
Net Purchases 2,280,000 3,607,200
Net mark-ups 450,000
Net markdowns 320,000
Sales 4,350,000
Sales Returns 300,000
Employee discount 100,000
Sales discount 80,000
Normal shrinkage 50,000
What is the estimated cost of June 30, 20X1 inventory using the average approach?
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