1. Raw material for stock

2.Rent/ Utilities

3. Items under finished goods inventories

4.Office building and factory machineries

5. Sales and raw material for production

6.Development costs

7.Product sales

8. Cost of rejected units

9. Correction made to a statement

10. Unplanned replacement and lost profit from poor review

11.Wastage reprocessing

Customers are perceiving standards for their various purchases and knowledge about the products are nowadays increasing a lot.

With respect to the statement as discussed above relate the items under their respective categories as per quality cost and TOC.

Flame Company adopted the FIFO approach of inventory pricing in connection with the use of the retail inventory method. The retail records showed the following: 2020 Cost Retail Beginning inventory 556,800 928,000 Purchases 4,576,000 7,028,000 Net markup 42,000 Net markdown 30,000 Sales 6,840,000 2021 Purchases 4,760,000 6,812,000 Net markup 56,000 Net markdown 68,000 Sales 6,928,000 Required: Determine the estimated cost of inventory on December 31, 2020 and 2021 applying the FIFO retail approach