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Problem 1, The following data pertain to a single department for the month of October for ABC Company.

At CostAt 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: 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

User Blazi
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1 Answer

2 votes
Why is this just worth 5 points
User Martin Tausch
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