56.How much is the cost of goods sold using average method? Presented below is information taken from ABC Company for the three months ended March 31:RetailCostInventory, Jan. 1P300,000P1,200,000Purchases6,000,0008,500,000Purchase returns400,000800,000Purchase discounts150,000Purchase allowance50,000Freight-inMarkups20,000600,000Markup cancellationsDepartmental transfer-inDepartmental transfer-out50,000600,0001,100,000560,0001,334,000Markdown316,000Markdown cancellations100,000Sales7,000,000Sales returns700,000Normal shrinkage500,000

Presented below is information taken from ABC Company for the three months ended March 31: Cost Retail Inventory, Jan. 1 Purchases 300,000 6,000,000 400,000 150,000 50,000 20,000 1,200,000 8,500,000 800,000 Purchase returns Purchase discounts Purchase allowance Freight-in Markups Markup cancellations Departmental transfer-in Departmental transfer-out 600,000 50,000 1,100,000 600,000 560,000 1,334,000 Markdown 316,000 Markdown cancellations 100,000 Sales 7,000,000 Sales returns 700,000 Normal shrinkage 500,000

Presented below is information taken from ABC Company for the three months ended March 31: Cost Retail Inventory, Jan. 1 Purchases 300,000 6,000,000 400,000 150,000 50,000 20,000 1,200,000 8,500,000 800,000 Purchase returns Purchase discounts Purchase allowance Freight-in Markups Markup cancellations Departmental transfer-in Departmental transfer-out 600,000 50,000 1,100,000 600,000 560,000 1,334,000 Markdown 316,000 Markdown cancellations 100,000 Sales 7,000,000 Sales returns 700,000 Normal shrinkage 500,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cayden Company provided the following information:Inventory, January 1Cost P350,000Retail 650,000Purchases during the yearCost 2,900,000Retail 4,800,000Freight in 230,000Purchase ReturnsCost 100,000Retail 175,000Purchase Discount 210,000Sales 5,000,000Sales Discount 115,000Sales Returns 200,000Markups 150,000Markups cancellation 70,000Markdown 60,000Estimated normal shrinkage 2% of salesShoplifting losses (abnormal) 50,000Requirements: Compute the ending inventory using the1. LCNRV approach
Cayden Company provided the following information:Inventory, January 1Cost P350,000Retail 650,000Purchases during the yearCost 2,900,000Retail 4,800,000Freight in 230,000Purchase ReturnsCost 100,000Retail 175,000Purchase Discount 210,000Sales 5,000,000Sales Discount 115,000Sales Returns 200,000Markups 150,000Markups cancellation 70,000Markdown 60,000Estimated normal shrinkage 2% of salesShoplifting losses (abnormal) 50,000Requirements: Compute the ending inventory using the1. Average approach
Cayden Company provided the following information:Inventory, January 1Cost P350,000Retail 650,000Purchases during the yearCost 2,900,000Retail 4,800,000Freight in 230,000Purchase ReturnsCost 100,000Retail 175,000Purchase Discount 210,000Sales 5,000,000Sales Discount 115,000Sales Returns 200,000Markups 150,000Markups cancellation 70,000Markdown 60,000Estimated normal shrinkage 2% of salesShoplifting losses (abnormal) 50,000Requirements: Compute the ending inventory using the1. FIFO approach
Cayden Company provided the following information:Inventory, January 1Cost P350,000Retail 650,000Purchases during the yearCost 2,900,000Retail 4,800,000Freight in 230,000Purchase Returns Cost 100,000Retail 175,000Purchase Discount 210,000Sales 5,000,000Sales Discount 115,000Sales Returns 200,000Markups 150,000Markups cancellation 70,000Markdown 60,000Estimated normal shrinkage 2% of salesShoplifting losses (abnormal) 50,000Requirements: Compute the ending inventory using the1. LCNRV approach2. Average approach3. FIFO approach
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