Lucas Co. operates a ready-to-wear (RTW) department store in downtown Manila. Because of the observable pattern between its cost and retail price, Lucas Co. used retail inventory method of estimating its inventory for interim reporting as of and for the 3 months period ending 30 September 2020. The records of Lucas Co. shows the following: Beginning inventory at costP 85,000Beginning inventory at retail106,250Net purchases at cost95,628Net purchases at retail139,880Net mark up25,000Net mark down5,500Net sales60,000Sales discount3,000Sales returns4,000Sales allowance2,000Employee discount5,000Theft and shrinkage (normal)1,500 Using FIFO retail inventory method, Lucas Co.’s ending inventory as of 30 September 2020 isa. P123,428b. P116,478c. P132,428d. P114,678

Name: Lucas Co. operates a ready-to-wear (RTW) department store in downtown
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Lucas Co. operates a ready-to-wear (RTW) department store in downtown Manila. Because of the observable pattern between its cost and retail price, Lucas Co. used retail inventory method of estimating its inventory for interim reporting as of and for

The following calculations are done using the FIFO retail inventory method to show the cost incurred…

Answered: Lucas Co. operates a ready-to-wear…

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 14RE: On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing....

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Lucas Co. operates a ready-to-wear (RTW) department store in downtown Manila. Because of the observable pattern between its cost and retail price, Lucas Co. used retail inventory method of estimating its inventory for interim reporting as of and for the 3 months period ending 30 September 2020. The records of Lucas Co. shows the following:

Beginning inventory at cost	P 85,000
Beginning inventory at retail	106,250
Net purchases at cost	95,628
Net purchases at retail	139,880
Net mark up	25,000
Net mark down	5,500
Net sales	60,000
Sales discount	3,000
Sales returns	4,000
Sales allowance	2,000
Employee discount	5,000
Theft and shrinkage (normal)	1,500

Using FIFO retail inventory method, Lucas Co.’s ending inventory as of 30 September 2020 is

a. P123,428

b. P116,478

c. P132,428

d. P114,678

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