he inventory and purchases data of Illumina Company for the last quarter of 2023 are as follows Beginning Inventory: At cost - P650,000; At retail - P1,075,000 Purchases during the period: At cost - P2,450,000; At retail - P3,025,000 Freight in - P50,000; Net markup - P400,000; Net markdown - P300,000 Net sales during the period - P3,880,000 Question: If Illumina uses the first-in, first-out basis and ignores the lower of cost and net realizable value rule, what is the ending inventory at estimated cost? a. P320,000 b. P256,000 c. P240,000 d. P224,000
he inventory and purchases data of Illumina Company for the last quarter of 2023 are as follows Beginning Inventory: At cost - P650,000; At retail - P1,075,000 Purchases during the period: At cost - P2,450,000; At retail - P3,025,000 Freight in - P50,000; Net markup - P400,000; Net markdown - P300,000 Net sales during the period - P3,880,000 Question: If Illumina uses the first-in, first-out basis and ignores the lower of cost and net realizable value rule, what is the ending inventory at estimated cost? a. P320,000 b. P256,000 c. P240,000 d. P224,000
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4PEA: Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory...
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The inventory and purchases data of Illumina Company for the last quarter of 2023 are as follows
Beginning Inventory: At cost - P650,000; At retail - P1,075,000
Purchases during the period: At cost - P2,450,000; At retail - P3,025,000
Freight in - P50,000; Net markup - P400,000; Net markdown - P300,000
Net sales during the period - P3,880,000
Question:
If Illumina uses the first-in, first-out basis and ignores the lower of cost and net realizable value rule, what is the ending inventory at estimated cost?
If Illumina uses the first-in, first-out basis and ignores the lower of cost and net realizable value rule, what is the ending inventory at estimated cost?
a. P320,000
b. P256,000
c. P240,000
d. P224,000
c. P240,000
d. P224,000
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