Thursday Co. is estimating the cost of its inventory at month-end. The accountant determined the following: CostRetailInventory, Jan 1P 20,00028,000Purchases110,600160,600Freight-In 4,000 Purchase Discounts1,000 Purchase Returns10,40017,200Departmental Transfers-In2,0003,000Departmental Transfers-Out1,6002,400Markups 12,000Markup Cancellations 4,000Markdowns 24,000Markdown Cancellations 6,000 Add. Information:A loss of P 10,000 was recognized during the period for damaged goods. The goods have retail value of 14,000Gross sales for the period amounted to P 87,600. Sales returns and discounts amounted to P 5,000 and P 2,000, respectively. Employee discounts, treated as outright deduction to sale price, amounted to 1,000.Normal spoilage of P 400 was subsumed to cost of sales.9. How much are the ending inventory and cost of sales, respectively, under the FIFO method?a.49,920;63,680b. 47,588;66,012c. 52,266;61,334d. 44,927; 68,673

Name: Thursday Co. is estimating the cost of its inventory at month-end. The
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Description: Thursday Co. is estimating the cost of its inventory at month-end. The accountant determined the following: CostRetailInventory, Jan 1P 20,00028,000Purchases110,600160,600Freight-In 4,000 Purchase Discounts1,000 Purchase Returns10,40017,200Departme

The first in, first out (FIFO) accounting concept asserts that assets purchased or acquired first…

Answered: 00 Freight-In 4,000 Purchase…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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Thursday Co. is estimating the cost of its inventory at month-end. The accountant determined the following:

	Cost	Retail
Inventory, Jan 1	P 20,000	28,000
Purchases	110,600	160,600
Freight-In	4,000
Purchase Discounts	1,000
Purchase Returns	10,400	17,200
Departmental Transfers-In	2,000	3,000
Departmental Transfers-Out	1,600	2,400
Markups		12,000
Markup Cancellations		4,000
Markdowns		24,000
Markdown Cancellations		6,000

Add. Information:

A loss of P 10,000 was recognized during the period for damaged goods. The goods have retail value of 14,000
Gross sales for the period amounted to P 87,600. Sales returns and discounts amounted to P 5,000 and P 2,000, respectively. Employee discounts, treated as outright deduction to sale price, amounted to 1,000.
Normal spoilage of P 400 was subsumed to cost of sales.

9. How much are the ending inventory and cost of sales, respectively, under the FIFO method?

a.49,920;63,680

b. 47,588;66,012

c. 52,266;61,334

d. 44,927; 68,673

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