What is the cost of inventory of Z Company on December 31? What amount of cost of goods sold should Z Company report for the current year?What is the estimated cost of inventory using the average retail? Situation 1 Z Company provided the following data connected to its inventory transactions:Date and TransactionUnitsUnit Cost40,00030,000January 1 balanceP20February 10 saleApril 12 purchaseSeptember 20 saleNovember 28 purchase60,000P2559,00040,000P30The entity used the weighted average method. At December 31, the entity determined that the NRV per unitis P23.Situation 2 An entity used the average cost retail method to estimate its inventory. Date relating to theinventory on December 31, 2020 are:CostRetailInventory, January 11,000,0001,500,000Purchases5,300,0007,000,000Net markupNet markdown800,000300,000Sales6,000,000Estimated normal shoplifting lossesEstimated normal shrinkage is 5% of sales200,000

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Description: What is the cost of inventory of Z Company on December 31? What amount of cost of goods sold should Z Company report for the current year?What is the estimated cost of inventory using the average retail? Situation 1 Z Company provided the following d

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Business

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What is the cost of inventory of Z Company on December 31? What amount of cost of goods sold should Z Company report for the current year?

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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