Question

3. The following information is peuvided for AHC CA Cast 200.000 300.CO 10,000 Retail 500.000 6OXICO Beginning inventory Purchase Purchase discount Sales Sales retum Markup Markup cancellation Markdown Markdown cancellation 850,000 20,000 18,000 3.000 8.000 2.XX 2 Required: Compute the cost of ending inventory wing a) Retail FIFO b] Retail LCNRV d Retail Average

Answer 1

Accolding to data :- P. No.1 Generally Inventory ale (At Cost) opening inventory 200,000 purchase 300,000 10,000 purchase Discount (A) Total Inventory 490,000 (B) Sales (Het) Sales - Sales referes 365,273 (At cost) Ending inventory (A-B) 194,727 Cost of Ending inventory Retail FIFO - closing inventory 4100000 820,000 980,000 At cost (300,000 - 10,000 X 980,000 600,000 135,333

P. No.2 formula Cost last time purchases X end inventory at Retail Retail & Purchase Retail LC NRV Ending inventory 1100,000 820,000 880,000 Cost at per FIFO 135,333 HRV 980,000 lower ey (1) & (6 135,333|- Retail Average Total Cost x Ending inventory Total Retail price Retail price. 490,000 1,100,000 x 980,000 194,7971-

P.No.3 Culemaking_ Noto-1 Sold Stock At Retail 850,000 sales (-) sales Returns 80,000 sales 830,000 Total less . Her markup 15,000 (18,000 - 3,000) Add: Het mark Down 5,000 820,000 worting Noter 9 Sales after Retail proft without markup & down 820,000 Sales before Retail profit without markup & down Total cost of stoke x Sold Stock at Total Retail price Retail price 490,000 x 890,000 1,100,000 3659731-