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Empress Company used the retail inventory method to approximate the ending inventory. The following information is available for the current year; Cost Retail 650,000 9,000,000 200,000 300,000 150,000 200,000 1,200,000 14,700,000 Beginning inventory Purchases Freight in Purchase returns Purchase allowances Departmental transfer in Net markup Net markdown Sales Sales discounts 500,000 300,000 300,000 1,000,000 9,500,000 100,000 500,000 600,000 400,000 Employee discounts Estimated normal shoplifting losses Estimated normal shrinkage

Empress Company used the retail inventory method to approximate the ending inventory. The following information is available for the current year; Cost Retail 650,000 9,000,000 200,000 300,000 150,000 200,000 1,200,000 14,700,000 Beginning inventory Purchases Freight in Purchase returns Purchase allowances Departmental transfer in Net markup Net markdown Sales Sales discounts 500,000 300,000 300,000 1,000,000 9,500,000 100,000 500,000 600,000 400,000 Employee discounts Estimated normal shoplifting losses Estimated normal shrinkage

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 6P: Retail Inventory Method Turner Corporation uses the retail inventory method. The following...
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a. What is the estimated cost of the ending inventory if the conservative approach was used?

b. What is the estimated cost of the ending inventory if the average cost approach was used?

c. What is the estimated cost of the ending inventory if the FIFO approach was used?

Please present the solution in good accounting form. 

Empress Company used the retail inventory method to The following information is available for the current year: approximate the ending inventory. The following information is available for the current ve Cost Retail 650,000 9,000,000 200,000 300,000 150,000 200,000 Beginning inventory Purchases 1,200,000 14,700,000 Freight in Purchase returns Purchase allowances Departmental transfer in Net markup Net markdown Sales Sales discounts Employee discounts Estimated normal shoplifting losses Estimated normal shrinkage 500,000 300,000 300,000 1,000,000 9,500,000 100,000 500,000 600,000 400,000
Transcribed Image Text:Empress Company used the retail inventory method to The following information is available for the current year: approximate the ending inventory. The following information is available for the current ve Cost Retail 650,000 9,000,000 200,000 300,000 150,000 200,000 Beginning inventory Purchases 1,200,000 14,700,000 Freight in Purchase returns Purchase allowances Departmental transfer in Net markup Net markdown Sales Sales discounts Employee discounts Estimated normal shoplifting losses Estimated normal shrinkage 500,000 300,000 300,000 1,000,000 9,500,000 100,000 500,000 600,000 400,000
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