Reference no: EM132552124
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: Find 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