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Find estimate cost of ending inventory using cost retain

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Reference no: EM132551887

The following data pertain to a single department for the month of October for ABC Company.

At Cost At Retail

Beginning inventory................................35,000 40,000

Purchase .............................................50,000 80,000

Purchase discount....................................5,000 15,000

Purchase return and allowance.....................10,000 14,000

Sales (net).....................................................................70,000

Additional markup ..........................................................20,000

Markup cancellation ..........................................................5,000

Markdown ...................................................................10,000

Markdown cancellation ......................................................6,000

Normal spoilage..............................................................7,000

Normal shortage .............................................................3,000

Abnormal spoilage ..........................................................5,000

Required:

Question 1: Compute the estimated cost of ending inventory using:

A. Conventional Retail Method

B. Cost Retail Method

C. Gross Profit Method, if markup percentage is 20 % on cost.

Reference no: EM132551887

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