Presented below is information pertaining to ABC Co.: Cost Retail Inventory, January 1 21,750 35,000 Purchases 138,250 200,750 Freight-In 5,000 - Purchase discounts 1,250 - Purchase returns 13,000 21,500 Departmental Transfers-In (Debit) 2,500 3,750 Departmental Transfers-Out (Credit) 2,000 3,000 Markups 15,000 Markup cancellations 5,000 Markdowns 30,000 Markdown cancellations 7,500 Abnormal spoilage (theft and casualty loss) 12,500 17,500 Sales 109,500 Sales returns 6,250 Sales discounts 2,500 Employee discounts 1,250 Normal spoilage (shrinkage and breakages) 500 1. How much is the ending inventory under the Average cost method?
Presented below is information pertaining to ABC Co.:
|
Cost |
Retail |
|
|
Inventory, January 1 |
21,750 |
35,000 |
|
Purchases |
138,250 |
200,750 |
|
Freight-In |
5,000 |
- |
|
Purchase discounts |
1,250 |
- |
|
Purchase returns |
13,000 |
21,500 |
|
Departmental Transfers-In (Debit) |
2,500 |
3,750 |
|
Departmental Transfers-Out (Credit) |
2,000 |
3,000 |
|
Markups |
15,000 |
|
|
Markup cancellations |
5,000 |
|
|
Markdowns |
30,000 |
|
|
Markdown cancellations |
7,500 |
|
|
Abnormal spoilage (theft and casualty loss) |
12,500 |
17,500 |
|
Sales |
109,500 |
|
|
Sales returns |
6,250 |
|
|
Sales discounts |
2,500 |
|
|
Employee discounts |
1,250 |
|
|
Normal spoilage (shrinkage and breakages) |
500 |
1. How much is the ending inventory under the Average cost method?
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