28 Numbers 28-30(Inventory Estimation – Retail Method)The following obtained from the Promises' records:CostRetailInventory, beginningPurchases1,500,7507,445,250 10,867,7092,182,291Freight-in269,250Purchase discount300,000150,000Purchase returns217,500Purchase allowance525,00075,000Abnormal spoilages and breakagesDepartmental transfer debitDepartmental transfer creditNet mark-up108,750900,0001,305,000675,000978,7501,800,000Net mark-down580,8679,750,000SalesSales discount487,500390,000585,000Sales allowanceSales returnsEmployees special discountNormal spoilages and breakages425,00054,00029. Using the average method, what is the cost of ending inventory and cost of goods sold?Ending InventoryCost of Goods solda. 2,719,578b. 2,613,200c. 2,636,326d. 2,700,0005,670,6725,777,0505,753,9245,700,00030. Using the conservative method, what is the cost of ending inventory and cost of goods sold?Ending InventoryCost of Goods solda. 2,719,578b. 2,613,2005,670,6725,777,050c. 2,636,326d. 2,700,0005,753,9245,700,000

The retail inventory method is a useful way to determine the value of inventory. Under this method,…

The following obtained from the Promises' records: Cost Retail Inventory, beginning 1,500,750 2,182,291 Purchases 7,445,250 10,867,709 Freight-in 269,250 Purchase discount 300,000 Purchase returns 150,000 217,500 Purchase allowance 525,000 Abnormal spoilages and breakages 75,000 108,750 Departmental transfer debit 900,000 1,305,000 Departmental transfer credit 675,000 978,750 Net mark-up Net mark-down Sales Sales discount 1,800,000 580,867 9,750,000 487,500 390.000

The following obtained from the Promises' records: Cost Retail Inventory, beginning 1,500,750 2,182,291 Purchases 7,445,250 10,867,709 Freight-in 269,250 Purchase discount 300,000 Purchase returns 150,000 217,500 Purchase allowance 525,000 Abnormal spoilages and breakages 75,000 108,750 Departmental transfer debit 900,000 1,305,000 Departmental transfer credit 675,000 978,750 Net mark-up Net mark-down Sales Sales discount 1,800,000 580,867 9,750,000 487,500 390.000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 44E: Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual...

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