Banana Company uses the retail method of inventory valuation. The following information is available: Beginning inventory: P186,196 at cost; P302,250 at retail Purchases: P703,740 at cost; P1,120,000 at retail Freight in: P12,400 Purchase discounts: P14,400 Purchase returns: P25,050 at cost; P48,300 at retail Net additional markups – P100,000 Net markdowns – P205,000 Sales revenue – P900,000 What is the estimated cost of the ending inventory using FIFO retail? a. 368,950 b. 258,265 c. 250,886
Banana Company uses the retail method of inventory valuation. The following information is available: Beginning inventory: P186,196 at cost; P302,250 at retail Purchases: P703,740 at cost; P1,120,000 at retail Freight in: P12,400 Purchase discounts: P14,400 Purchase returns: P25,050 at cost; P48,300 at retail Net additional markups – P100,000 Net markdowns – P205,000 Sales revenue – P900,000 What is the estimated cost of the ending inventory using FIFO retail? a. 368,950 b. 258,265 c. 250,886
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...
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8. Banana Company uses the retail method of
Beginning inventory:
P186,196 at cost; P302,250 at retail
Purchases:
P703,740 at cost; P1,120,000 at retail
Freight in: P12,400
Purchase discounts: P14,400
Purchase returns:
P25,050 at cost; P48,300 at retail
Net additional markups – P100,000
Net markdowns – P205,000
Sales revenue – P900,000
What is the estimated cost of the ending inventory using FIFO retail?
a. 368,950
b. 258,265
c. 250,886
d. 258,625
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