Jam Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the computation of the inventory at December 31, 2011 are as follows: COST RETAIL Inventory, January 1 720,000 1,000,000 Purchases 4,080,000 6,300,000 Markup 700,000 Markdown 500,000 Sales 5,900,000 Estimated normal shoplifting losses 100,000 Under the AVERAGE COST RETAIL METHOD, what is the estimated cost of inventory on December 31, 2011?
Jam Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the computation of the inventory at December 31, 2011 are as follows:
COST RETAIL
Inventory, January 1 720,000 1,000,000
Purchases 4,080,000 6,300,000
Markup 700,000
Markdown 500,000
Sales 5,900,000
Estimated normal shoplifting losses 100,000
Under the AVERAGE COST RETAIL METHOD, what is the estimated cost of inventory on December 31, 2011?
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