MC42 The following data is available for Corona Trading:CostP 47,075213,3273,400RetailP 70,025306,375Inventory, January 1Purchases (net)Freight inSalesAdditional markupsCancellation of additional markups320,50018,9007,80010,640MarkdownsPhysical inventory, December 31,at retail39,390Corona Trading uses the average retail method.What is the cost of goods sold before loss on inventory shortage?P248,355P231,798P225,175P224,350a.b.с.d.

Cost of goods sold: Cost of goods sold refers to the expenses incurred by the company in order to…

MC42 The following data is available for Corona Trading: Cost P 47,075 213,327 3,400 Retail P 70,025 306,375 Inventory, January 1 Purchases (net) Freight in Sales Additional markups Cancellation of additional markups Markdowns 320,500 18,900 7,800 10,640 Physical inventory, December 31, at retail 39,390 Corona Trading uses the average retail method. What is the cost of goods sold before loss on inventory shortage? P248,355 P231,798 P225,175 P224,350 a. b. с. d.

MC42 The following data is available for Corona Trading: Cost P 47,075 213,327 3,400 Retail P 70,025 306,375 Inventory, January 1 Purchases (net) Freight in Sales Additional markups Cancellation of additional markups Markdowns 320,500 18,900 7,800 10,640 Physical inventory, December 31, at retail 39,390 Corona Trading uses the average retail method. What is the cost of goods sold before loss on inventory shortage? P248,355 P231,798 P225,175 P224,350 a. b. с. d.

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 6.3BE: Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as...

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Inventory Valuation Specific identification method Weighted average cost method FIFO method LIFO method LIFO liquidation LIFO conformity rule LIFO reserve Replacement cost Inventory profit Lower-of-cost-or-market (LCM) rule Inventory turnover ratio Number of days sales in inventory Moving average (Appendix) The name given to an average cost method when a weighted average cost assumption is used with a perpetual inventory system. An inventory costing method that assigns the same unit cost to all units available for sale during the period. A conservative inventory valuation approach that is an attempt to anticipate declines in the value of inventory before its actual sale. An inventory costing method that assigns the most recent costs to ending inventory. The current cost of a unit of inventory. An inventory costing method that assigns the most recent costs to cost of goods sold. A measure of how long it takes to sell inventory. The IRS requirement that when LIFO is used on a tax return, it must also be used in reporting income to stockholders. An inventory costing method that relies on matching unit costs with the actual units sold. The portion of the gross profit that results from holding inventory during a period of rising prices. The result of selling more units than are purchased during the period, which can have negative tax consequences if a company is using LIFO. The excess of the value of a companys inventory stated at FIFO over the value stated at LIFO. A measure of the number of times inventory is sold during the period.
Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follows: July 1 Inventory 90 units at 54 8 Sale 75 units 15 Purchase 125 units at 60 27 Sale 80 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (A) the cost of goods sold on July 27 and (B) the inventory on July 31.