When you undertook the preparation of the financial statements for Telfer Company at January 31, 2026, the following data were available: Inventory, February 1, 2025 Markdowns Markups Markdown cancellations Markup cancellations Purchases Sales revenue Purchases returns and allowances Sales returns and allowances At Cost $70,800 219,500 4,300 At Retail $98,500 35,000 63,000 20,000 10,000 294,000 335,000 5,500 10,000 Compute the ending inventory at cost as of January 31, 2026, using the retail method which approximates lower-of-average-cost-or- market.
When you undertook the preparation of the financial statements for Telfer Company at January 31, 2026, the following data were available: Inventory, February 1, 2025 Markdowns Markups Markdown cancellations Markup cancellations Purchases Sales revenue Purchases returns and allowances Sales returns and allowances At Cost $70,800 219,500 4,300 At Retail $98,500 35,000 63,000 20,000 10,000 294,000 335,000 5,500 10,000 Compute the ending inventory at cost as of January 31, 2026, using the retail method which approximates lower-of-average-cost-or- market.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:When you undertook the preparation of the financial statements for Telfer Company at January 31, 2026, the following data were
available:
Inventory, February 1, 2025
Markdowns
Markups
Markdown cancellations
Markup cancellations
Purchases
Sales revenue
Purchases returns and allowances
Sales returns and allowances
Ending inventory at cost $
LA
At Cost
$70,800
219,500
4,300
At Retail
$98,500
35,000
63,000
20,000
10,000
294,000
335,000
5,500
Compute the ending inventory at cost as of January 31, 2026, using the retail method which approximates lower-of-average-cost-or-
market.
10,000
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