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Business, 27.05.2020 17:58 karla21pilots

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)…………………………………………………………...70,00 0
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

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