Reference no: EM132540814
Question - The records of Hot's Department Store report the following data for the month of January:
Beginning inventory at cost P 440,000
Beginning inventory at sales price 800,000
Purchases at cost 4,500,000
Initial markup on purchases 2,900,000
Purchase returns at cost 240,000
Purchase returns at sales price 350,000
Freight on purchases 100,000
Additional markup 250,000
Markup cancellations 100,000
Markdown 600,000
Markdown cancellations 100,000
Net sales 6,500,000
Sales allowance 100,000
Sales returns 500,000
Employee discounts 200,000
Theft and other losses 100,000
Required - Using the average retail inventory method, compute Hot's ending inventory at cost?