Danes Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data...
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Danes Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to computation of the inventory at July 31, 2020, are as follows: Cost P 700,000 P 3,500,000 Retail P 1,100,000 P 5,000,000 Inventory 2/1/20 Purchases Additional markups Sales Estimated normal shoplifting losses Under the approximately lower of average cost or market retail method, Danes cost of sales at July 31, 2020, is P 900,000 P 6,000,000 P 100,000 Danes Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to computation of the inventory at July 31, 2020, are as follows: Cost P 700,000 P 3,500,000 Retail P 1,100,000 P 5,000,000 Inventory 2/1/20 Purchases Additional markups Sales Estimated normal shoplifting losses Under the approximately lower of average cost or market retail method, Danes cost of sales at July 31, 2020, is P 900,000 P 6,000,000 P 100,000
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The retail inventory method is used to estimate inventory and cost of goods sold COGS based on the relationship between the cost and selling price of ... View the full answer
Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
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