ABC Company uses the retail inventory method to value its inventory for financial reporting purposes. The company

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ABC Company uses the retail inventory method to value its inventory for financial reporting purposes. The company has compiled the following cost and retail sales data for 20X1.

	Cost	Retail
Starting Inventory	7.000.000	10.000.000
acquisitions	12.800.000	15.000.000
Clear Markups		2.000.000
Net Discounts		1.000.000
net sales		12.000.000

1) If ABC wants to approximate the average cost of its inventory, determine the best estimate.

2) If ABC wants to approximate the lower value of cost or market, determine the best estimate.

Related Book For answer-question

Financial Accounting

ISBN: 978-0078111020

7th Edition

Authors: LibbyShort

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Posted Date: Jul 17, 2023 04:43 AM

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ABC Company uses the retail inventory method to value its inventory for financial reporting purposes. The company

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