Description of this paper

Inventory valuation

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solution


Question

Question;A company is in the process of preparing interim;financial statements. Since they take physical on an annual basis they use the;Retail Inventory Method to estimate the inventory. Fortunately, the Company;keeps very detailed inventory records at both cost and retail. The following information for corrugated;boxes as of the end of the third quarter, 2012, is provided.;Using the retail inventory method, calculate ending;inventory at cost (for the third quarter of 2012);Cost;Retail;Beginning Inventory;92,000;167,000;Purchases;220,000;435,000;Purchase discounts;3,000;Purchase returns;8,000;Markups;10,000;Markup cancellations;25,000;Markdowns;5,000;Employee discounts;9,000;Sales;430,000

 

Paper#37527 | Written in 18-Jul-2015

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