A company has two pieces of Inventory, A and B. Inventory A cost the company P40 per unit and can now be sold for P60 per unit after incurring P15 in selling expenses per unit. It has a replacement cost of P35 per unit and a normal profit of P4 per unit. Inventory B cost the company P52 per unit and can now be sold for P63 per unit after the incurring P15 in selling expenses per unit and a normal profit of P4 per unit. If the company uses the retail method to value its inventory.

How much should be reported on the balance sheet for the items?

Answer rating: 100% (QA)

To determine the amount that should be reported on the balance sheet for the items using the retail ... View the full answer