Reference no: EM132669871
Question - Kyrz uses the retail inventory method. The following information is available for the current year:
Cost Retail
Beginning inventory P1,300,000 P2,600,000
Purchases 18,000,000 29,200,000
Freight in 400,000
Purchase returns 600,000 1,000,000
Purchase allowances 300,000
Departmental transfer in 400,000 600,000
Net markups 600,000
Net markdowns 2,000,000
Sales 24,700,000
Sales returns 350,000
Sales discounts 200,000
Employee discounts 600,000
Loss from breakage 50,000
1. Compute the estimated cost of inventory at the end of the current year using the conventional (lower of cost or market) retail inventory method?
2. Compute the estimated cost of inventory at the end of the current year using the average retail inventory method?
3. Compute the estimated cost of inventory at the end of the current year using the FIFO retail inventory method?