Project_2_AC550 - 2011, the following data were available:...

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PROJECT 2 Note: Each part of the case is independent of each other. Upload into your Dropbox when you complete the assignment. Part A- On December 31, 2010 Felt Company's inventory burned. Sales and purchases for the year had been $1,400,000 and $980,000, respectively. The beginning inventory (Jan. 1, 2010) was $170,000; in the past Felt's gross profit has averaged 40% of selling price. Instructions Compute the estimated cost of inventory burned, and give entries as of December 31, 2010 to close merchandise accounts. Part B When you undertook the preparation of the financial statements for Telfer Company at January 31,
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Unformatted text preview: 2011, the following data were available: At Cost At Retail Inventory, February 1, 2010 $70,800 $ 98,500 Markdowns 35,000 Markups 63,000 Markdown cancellations 20,000 Markup cancellations 10,000 Purchases 219,500 294,000 Sales 345,000 Purchases returns and allowances 4,300 5,500 Sales returns and allowances 10,000 Instructions Compute the ending inventory at cost as of January 31, 2011, using the retail method which approximates lower of cost or market. Your solution should be in good form with amounts clearly labeled....
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Project_2_AC550 - 2011, the following data were available:...

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