FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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For numbers 6 and 7:
Bruno Company provided the following data:
Cost Retail
Beginning inventory 340,000 540,000
Purchases 4,500,000 7,300,000
Freight in 100,000
Purchase return 150,000 300,000
Purchase allowance 90,000
Departmental transfer in 100,000 160,000
Net markup 200,000
Net markdown 500,000
Sales 6,500,000
Sales allowance 50,000
Employee discount 100,000
Spoilage and breakage 300,000
6. What is the estimated cost of ending inventory using the conservative retail?
668,354 c. 364,557
303,797 d. 360,000
7. What is the estimated cost of ending inventory using the average cost retail?
713,542 c. 384,000
389,189 d. 324,324
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