The following obtained from the Promises' records: Cost Retail Inventory, beginning 1,500,750 2,182,291 Purchases 7,445,250 10,867,709 Freight-in 269,250 Purchase discount 300,000 Purchase returns 150,000 217,500 Purchase allowance 525,000 Abnormal spoilages and breakages 75,000 108,750 Departmental transfer debit 900,000 1,305,000 Departmental transfer credit 675,000 978,750 Net mark-up Net mark-down Sales Sales discount 1,800,000 580,867 9,750,000 487,500 390.000
The following obtained from the Promises' records: Cost Retail Inventory, beginning 1,500,750 2,182,291 Purchases 7,445,250 10,867,709 Freight-in 269,250 Purchase discount 300,000 Purchase returns 150,000 217,500 Purchase allowance 525,000 Abnormal spoilages and breakages 75,000 108,750 Departmental transfer debit 900,000 1,305,000 Departmental transfer credit 675,000 978,750 Net mark-up Net mark-down Sales Sales discount 1,800,000 580,867 9,750,000 487,500 390.000
Chapter10: Inventory
Section: Chapter Questions
Problem 12PB: Compare the calculations for gross margin for B76 Company, based on the results of the perpetual...
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28

Transcribed Image Text:Numbers 28-30
(Inventory Estimation – Retail Method)
The following obtained from the Promises' records:
Cost
Retail
Inventory, beginning
Purchases
1,500,750
7,445,250 10,867,709
2,182,291
Freight-in
269,250
Purchase discount
300,000
150,000
Purchase returns
217,500
Purchase allowance
525,000
75,000
Abnormal spoilages and breakages
Departmental transfer debit
Departmental transfer credit
Net mark-up
108,750
900,000
1,305,000
675,000
978,750
1,800,000
Net mark-down
580,867
9,750,000
Sales
Sales discount
487,500
390,000
585,000
Sales allowance
Sales returns
Employees special discount
Normal spoilages and breakages
425,000
54,000
29. Using the average method, what is the cost of ending inventory and cost of goods sold?
Ending Inventory
Cost of Goods sold
a. 2,719,578
b. 2,613,200
c. 2,636,326
d. 2,700,000
5,670,672
5,777,050
5,753,924
5,700,000
30. Using the conservative method, what is the cost of ending inventory and cost of goods sold?
Ending Inventory
Cost of Goods sold
a. 2,719,578
b. 2,613,200
5,670,672
5,777,050
c. 2,636,326
d. 2,700,000
5,753,924
5,700,000
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