Sultan Co. uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the inventory computation at June 30, 2020 are as follows: (pls see inserted picture) What is the estimated cost of June 30, 2020 inventory using the average approach? * Cost Retail Inventory, January 1 Net Purchases Net Mark-ups Net Mark-downs 1,262,800 820,000 2,280,000 3,607,200 450,000 320,000 Sales 4,350,000 Sales returns Employee discount Sales discount Normal shrinkage 300,000 100,000 80,000 50,000

Sultan Co. uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the inventory computation at June 30, 2020 are as follows: (pls see inserted picture) What is the estimated cost of June 30, 2020 inventory using the average approach? * Cost Retail Inventory, January 1 Net Purchases Net Mark-ups Net Mark-downs 1,262,800 820,000 2,280,000 3,607,200 450,000 320,000 Sales 4,350,000 Sales returns Employee discount Sales discount Normal shrinkage 300,000 100,000 80,000 50,000

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

What is the estimated cost of June 30, 2020 inventory using the average approach?

Please show me the solution in a good accounting from.

Sultan Co. uses the retail inventory method to estimate its inventory for
interim statement purposes. Data relating to the inventory computation at
June 30, 2020 are as follows: (pls see inserted picture) What is the
estimated cost of June 30, 2020 inventory using the average approach?
*
Cost
Retail
Inventory, January 1
820,000
1,262,800
Net Purchases
Net Mark-ups
Net Mark-downs
2,280,000
3,607,200
450,000
320,000
4,350,000
300,000
100,000
Sales
Sales returns
Employee discount
Sales discount
Normal shrinkage
80,000
50,000

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