Ara Company used the average cost retail inventory method. The entity provided the followinginformation for the current year:CostRetailBeginning inventoryNet purchasesDepartmental transfer – creditNet mark-up1,650,0002,200,0003,725,000200,0004,950,000300,000150,000100,000200,000Inventory shortage – sales priceEmployee discountsSales, including sales of P400,000 of items whichwere marked down from P500,00021. What is the estimated cost of ending inventory?4,000,000

Name: Ara Company used the average cost retail inventory method. The entity
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Description: Ara Company used the average cost retail inventory method. The entity provided the followinginformation for the current year:CostRetailBeginning inventoryNet purchasesDepartmental transfer – creditNet mark-up1,650,0002,200,0003,725,000200,0004,950,0

Particulars Cost ($) Retail ($) Beginning Inventory 1650000 2200000 Net Purchases 3725000…

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Ara Company used the average cost retail inventory method. The entity provided the following information for the current year: Cost Retail Beginning inventory Net purchases Departmental transfer – credit Net mark-up 1,650,000 3,725,000 2,200,000 4,950,000 300,000 200,000 150,000 Inventory shortage – sales price Employee discounts Sales, including sales of P400,000 of items which were marked down from P500,000 21. What is the estimated cost of ending inventory? 100,000 200,000 4,000,000

Ara Company used the average cost retail inventory method. The entity provided the following information for the current year: Cost Retail Beginning inventory Net purchases Departmental transfer – credit Net mark-up 1,650,000 3,725,000 2,200,000 4,950,000 300,000 200,000 150,000 Inventory shortage – sales price Employee discounts Sales, including sales of P400,000 of items which were marked down from P500,000 21. What is the estimated cost of ending inventory? 100,000 200,000 4,000,000

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 13E: Retail Inventory Method The following information relates to the retail inventory method used by...

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