Question - Presented below is information related to Carpenter Inc.
Cost Retail
Inventory, 12/31/10 P375,000 P 550,000
Purchases 1,369,000 2,050,000
Purchase returns 90,000 120,000
Purchase discounts 27,000 -
Gross sales (after employee discounts) - 2,110,000
Sales returns - 145,000
Markups - 180,000
Markup cancellations - 60,000
Markdowns - 65,000
Markdown cancellations 30,000
Freight-in 63,000 -
Employee discounts granted - 12,000
Loss from breakage (normal) - 8,000
Instructions - Assuming that carpenter Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2011.