Problem 14-10 (IAA)Glamor Company provided the following data:Beginning inventoryCostSelling pricePurchases:Cost500,000770,000Selling priceTransportation inPurchase discountPurchase return:Cost3,070,0004,300,00070,00045,000Selling priceSales returnSales discount.MarkupMarkdownCancelation of markupCancelation of markdownSales25,00040,00080,00020,000100,000350,00030,00010,0004,000,000ng1. What amount should be reported as cost of endinginventory using the lower of average cost and netrealizable value approach?a. 596,400.b. 588,000c. 582,200d. 574,000ingWhat amount should be reported as cost of endinginventory using the average cost approach?a. 615,000b. 570,000c. 630,000d. 539,600

Computation of the cost of ending inventory and average cost are as follows:

Problem 14-10 (IAA) Glamor Company provided the following data: Beginning inventory Cost Selling price Purchases: Cost Selling price Transportation in Purchase discount Purchase return: Cost Selling price Sales return Sales discount Markup Markdown 500,000 770,000 3,070,000 4,300,000 70,000 45,000 25,000 40,000 80,000 20,000 100,000 350,000

Problem 14-10 (IAA) Glamor Company provided the following data: Beginning inventory Cost Selling price Purchases: Cost Selling price Transportation in Purchase discount Purchase return: Cost Selling price Sales return Sales discount Markup Markdown 500,000 770,000 3,070,000 4,300,000 70,000 45,000 25,000 40,000 80,000 20,000 100,000 350,000

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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