Reference no: EM133065215
Question - You obtained the following information in connection with Villman Company:
Cost Retail
Beginning inventory P1,987,200 P2,760,000
Sales 7,812,000
Purchases 4,688,640 6,512,000
Freight in 94,560
Mark ups 720,000
Mark up cancellations 120,000
Markdown 240,000
Markdown cancellations 40,000
Villman Company. uses the retail inventory method in estimating the values of its inventories and costs.
1. What is the cost ratio under average method?
a.68.58%
b.69.20%
c.70.00%
d.75.78%
2. What is the estimated ending inventory at retail?
a.P1,940,000
b.P2,060,000
c.P2,300,000
d.P1,860,000
3. What is the estimated ending inventory at cost using average?
a.P1,287,120
b.P1,412,786
c.P1,302,000
d.P1,275,588
4. What is the estimated cost of goods sold?
a.P5,468,400
b.P5,494,812
c.P4,685,117
d. P5,357,614