Glamor Company provided the following data: Beginning inventory Cost 500,000 770,000 Selling price Purchases: Cost Selling price Transportation in Purchase discount Purchase return: Cost 3,070,000 4,300,000 70,000 45,000 25,000 40,000 80,000 20,000 100,000 350,000 30,000 10,000 4,000,000 Selling price Sales return Sales discount Markup Markdown Cancelation of markup Cancelation of markdown Sales 1. What amount should be reported as cost of ending inventory using the lower of average cost and net realizable value approach? a. 596,400 b. 588,000 c. 582,200 d. 574,000 2. What amount should be reported as cost of ending inventory using the average cost approach? a. 615,000 b. 570,000 c. 630,000 d. 539,600
Glamor Company provided the following data: Beginning inventory Cost 500,000 770,000 Selling price Purchases: Cost Selling price Transportation in Purchase discount Purchase return: Cost 3,070,000 4,300,000 70,000 45,000 25,000 40,000 80,000 20,000 100,000 350,000 30,000 10,000 4,000,000 Selling price Sales return Sales discount Markup Markdown Cancelation of markup Cancelation of markdown Sales 1. What amount should be reported as cost of ending inventory using the lower of average cost and net realizable value approach? a. 596,400 b. 588,000 c. 582,200 d. 574,000 2. What amount should be reported as cost of ending inventory using the average cost approach? a. 615,000 b. 570,000 c. 630,000 d. 539,600
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Inventories
Section: Chapter Questions
Problem 6.2BE: Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as...
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