Charlene Company uses the average cost retail method to estimate its inventory. Data relating to the inventory on December 31, 2020 are: Cost Retail Inventory, January 1 1,000,000 1,500,000 Purchases 5,300,000 7,000,000 Net markup 800,000 Net markdown 300,000 Sales 6,000,000 Estimated normal shoplifting losses 200,000 Estimated normal shrinkage is 5% of sales The estimated cost of goods sold for 2020 should be a. 4,600,000 b.4,550,000 c.4,200,000 d.3,800,000
Charlene Company uses the average cost retail method to estimate its inventory. Data relating to the inventory on December 31, 2020 are:
Cost Retail
Inventory, January 1 1,000,000 1,500,000
Purchases 5,300,000 7,000,000
Net markup 800,000
Net markdown 300,000
Sales 6,000,000
Estimated normal shoplifting losses 200,000
Estimated normal shrinkage is 5% of sales
The estimated cost of goods sold for 2020 should be
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