FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:01
Ross Company provided the following data for the current.
year:
Problem 14-11 (IAA)
Retail
Cost
1,650,000
4,200,000
2,000,000
6N
Beginning inventory
Net purchases
Net markup
Net markdown
800,000
200,000 -
Net sales
The entity used the average retail inventory method to
estimate ending inventory.
It was determined that the average cost of the ending
inventory was P1,950,000.
If the entity used the FIF0 retail method, the cost ratio
would have been 60%.
1. What is the amount of net purchases at original retail
before markup and markdown?
a. 7,600,000
b. 7,000,000
с. 4,200,000
d. 6,400,000
2. What amount was reported as net sales?
a. 9,000,000
b. 3,000,000
c. 6,000,000
d. 7,000,000
3. What amount was reported as cost of goods sold?
a. 3,900,000
b. 3,000,000
c. 3,600,000
d. 1,800,000
398
E HA C
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