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Problem 14-7 (AICPA Adapted) Empress Company used the retail inventory method to approximate the ending inventory. The following information is available for the current year Cost Retail 650,000 9,000,000 200,000 300,000 150,000 200,000 Beginning inventory Purchases 1,200,000 14,700,000 Freight in Purchase returns 500,000 Purchase allowances 300,000 300,000 1,000,000 9,500,000 100,000 500,000 600,000 400,000 Departmental transfer in Net markup Net markdown Sales Sales discounts Employee discounts Estimated normal shoplifting losses Estimated normal shrinkage

Problem 14-7 (AICPA Adapted) Empress Company used the retail inventory method to approximate the ending inventory. The following information is available for the current year Cost Retail 650,000 9,000,000 200,000 300,000 150,000 200,000 Beginning inventory Purchases 1,200,000 14,700,000 Freight in Purchase returns 500,000 Purchase allowances 300,000 300,000 1,000,000 9,500,000 100,000 500,000 600,000 400,000 Departmental transfer in Net markup Net markdown Sales Sales discounts Employee discounts Estimated normal shoplifting losses Estimated normal shrinkage

Intermediate Accounting: Reporting And Analysis
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
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 6P: Retail Inventory Method Turner Corporation uses the retail inventory method. The following...
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1. What is the estimated cost of ending inventory using the conservation approach?
a. 2,400,000
b. 2,460,000
c. 3,060,000
d. 2,700,000

2. What is estimated cost of ending inventory using the average cost approach?
a. 2,560,000
b. 2,624,000
c. 3,264,000
d. 2,880,000

Problem 14-7 (AICPA Adapted) Empress Company used the retail inventory method to approximate the ending inventory. The following information is available for the current year Cost Retail 650,000 9,000,000 200,000 300,000 150,000 200,000 Beginning inventory Purchases 1,200,000 14,700,000 Freight in Purchase returns 500,000 Purchase allowances Departmental transfer in Net markup Net markdown Sales Sales discounts 300,000 300,000 1,000,000 9,500,000 100,000 500,000 600,000 400,000 Employee discounts Estimated normal shoplifting losses Estimated normal shrinkage 1. What is the estimated cost of ending inventory using the conservative approach? a. 2,400,000 b. 2,460,000 c. 3,060,000 d. 2,700,000 2. What is estimated cost of ending inventory using the average cost approach? a. 2,560,000 b. 2,624,000 c. 3,264,000 d. 2,880,000
Transcribed Image Text:Problem 14-7 (AICPA Adapted) Empress Company used the retail inventory method to approximate the ending inventory. The following information is available for the current year Cost Retail 650,000 9,000,000 200,000 300,000 150,000 200,000 Beginning inventory Purchases 1,200,000 14,700,000 Freight in Purchase returns 500,000 Purchase allowances Departmental transfer in Net markup Net markdown Sales Sales discounts 300,000 300,000 1,000,000 9,500,000 100,000 500,000 600,000 400,000 Employee discounts Estimated normal shoplifting losses Estimated normal shrinkage 1. What is the estimated cost of ending inventory using the conservative approach? a. 2,400,000 b. 2,460,000 c. 3,060,000 d. 2,700,000 2. What is estimated cost of ending inventory using the average cost approach? a. 2,560,000 b. 2,624,000 c. 3,264,000 d. 2,880,000
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