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Question - Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2011:
Cost
Retail
Merchandise inventory, January 1, 2011
$190,000
$280,000
Purchases
600,000
840,000
Freight-in
8,000
Net markups
20,000
Netmarkdowns
4,000
Net sales
800,000
Required: Determine the December 31, 2011, inventory that approximates average cost, lower of cost or market.
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