Sultan Co. uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the inventory computation at June 30, 2020 are as follows: (pls see inserted picture) What is the estimated cost of June 30, 2020 inventory using the average approach? * Cost Retail Inventory, January 1 Net Purchases Net Mark-ups Net Mark-downs 1,262,800 820,000 2,280,000 3,607,200 450,000 320,000 Sales 4,350,000 Sales returns Employee discount Sales discount Normal shrinkage 300,000 100,000 80,000 50,000
Sultan Co. uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the inventory computation at June 30, 2020 are as follows: (pls see inserted picture) What is the estimated cost of June 30, 2020 inventory using the average approach? * Cost Retail Inventory, January 1 Net Purchases Net Mark-ups Net Mark-downs 1,262,800 820,000 2,280,000 3,607,200 450,000 320,000 Sales 4,350,000 Sales returns Employee discount Sales discount Normal shrinkage 300,000 100,000 80,000 50,000
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4PEA: Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory...
Related questions
Topic Video
Question
What is the estimated cost of June 30, 2020 inventory using the average approach?
Please show me the solution in a good accounting from.
Transcribed Image Text:Sultan Co. uses the retail inventory method to estimate its inventory for
interim statement purposes. Data relating to the inventory computation at
June 30, 2020 are as follows: (pls see inserted picture) What is the
estimated cost of June 30, 2020 inventory using the average approach?
*
Cost
Retail
Inventory, January 1
820,000
1,262,800
Net Purchases
Net Mark-ups
Net Mark-downs
2,280,000
3,607,200
450,000
320,000
4,350,000
300,000
100,000
Sales
Sales returns
Employee discount
Sales discount
Normal shrinkage
80,000
50,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning