Problem 2 (Retail Method- Average) ABC’s inventory shows the following information at December 31, 20X1: Inventory, beginning: Cost P 560,000 Retail 1,400,000 Purchases: Cost 4,960,000 Retail 10,320,000 Freight-in 150,000 Mark-up 1,000,000 Mark-up cancellation 120,000 Mark-down 500,000 Mark-down cancellation 100,000 Sales 10,000,000 Estimated normal shrinkage 2.5% of Sales ABC uses the retail inventory method of valuing its inventory. How much is the estimated cost of inventory in 20X1?
Problem 2 (Retail Method- Average)
ABC’s inventory shows the following information at December 31, 20X1:
Inventory, beginning:
Cost P 560,000
Retail 1,400,000
Purchases:
Cost 4,960,000
Retail 10,320,000 Freight-in 150,000 Mark-up 1,000,000 Mark-up cancellation 120,000 Mark-down 500,000 Mark-down cancellation 100,000 Sales 10,000,000 Estimated normal shrinkage 2.5% of Sales
ABC uses the retail inventory method of valuing its inventory. How much is the estimated cost of inventory in 20X1?
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