Required:33. What is the estimated fire loss if OOO Company applies the conservative retail approach?34. What is the estimated cost of goods sold if OOO Company applies the FIFO retail approach?35. What is the estimated ending inventory if OOO Company applies the average cost approach? PROBLEM 40: O00 Company uses the retail inventory method. At the end of the current year,000 Company suffered a fire loss that destroyed most of its inventory. After the fire, onlygoods with a selling price of P125,000, a cost of P100,000 and a net realizable value of P75,000was salvaged. The following information is available prior to the fire:CostRetailP 1,100,000 P 2,200,00015,800,000540,000Beginning inventoryPurchases26,300,000Freight inPurchase returns1,000,000600,000300,000400,000Purchase allowancesDepartmental transfer inMarkupsCancelation of markdown800,000300,000100,000Departmental transfer out350,000900,000800,00050,00024,700,000350,000MarkdownsCancelation of markupSalesSales returnsSales discounts200,000Sales allowances100,000Employee discountsNormal wastage600,0005% of sales

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Description: Required:33. What is the estimated fire loss if OOO Company applies the conservative retail approach?34. What is the estimated cost of goods sold if OOO Company applies the FIFO retail approach?35. What is the estimated ending inventory if OOO Compan

Step 1: compute the value of the closing stock: Step 2: Compute the estimated fire loss: Estimated…

Business

Accounting

Required: 33. What is the estimated fire loss if OOO Company applies the conservative retail approach? 34. What is the estimated cost of goods sold if OOO Company applies the FIFO retail approach? 35. What is the estimated ending inventory if OOO Company applies the average cost approach?

Required: 33. What is the estimated fire loss if OOO Company applies the conservative retail approach? 34. What is the estimated cost of goods sold if OOO Company applies the FIFO retail approach? 35. What is the estimated ending inventory if OOO Company applies the average cost approach?

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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