At December 31, 2020, the following information was available from HIBISCUS Company's accounting recordsWhat is the cost of HIBISCUS Company's inventory at December 31, 2020, under the average method? CostRetailInventory, January 1, 2020220,500 P304,500Purchases1,234,8001,732,500Additional markups63,000Goods available for sale1,455,3002,100,000Gross sales for the year totaled P1,659,000. Markdown amounted to P21,000, salesreturns, P20,800 and spoilage, P25,000. Total recorded sales discount (includingemployee discounts of P35,000), P105,000.

Answered: At December 31, 2020, the following…

At December 31, 2020, the following information was available from HIBISCUS Company's accounting records What is the cost of HIBISCUS Company's inventory at December 31, 2020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

At December 31, 2020, the following information was available from HIBISCUS Company's accounting records

What is the cost of HIBISCUS Company's inventory at December 31, 2020, under the average method?

Cost
Retail
Inventory, January 1, 2020
220,500 P
304,500
Purchases
1,234,800
1,732,500
Additional markups
63,000
Goods available for sale
1,455,300
2,100,000
Gross sales for the year totaled P1,659,000. Markdown amounted to P21,000, sales
returns, P20,800 and spoilage, P25,000. Total recorded sales discount (including
employee discounts of P35,000), P105,000.

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