BSA 33

11. Alfie Corporation had the following amounts, all at retail:

Beginning inventory P 3,600 Purchases P100,000
Purchase returns 6,000 Net markups 18,000
Abnormal shortage 4,000 Net markdowns 2,800
Sales 72,000 Sales returns 1,800
Employee discounts 1,600 Normal shortage 2,600
What is Alfie’s ending inventory at retail?
a. P34,400 b. P36,000 c. P37,600 d. P38,400

12. The Luisito Department Store uses a calendar year and the FIFO retail inventory
method (assuming stable prices). Information relating to the computation of the
inventory at Dec. 31 as follows:
Cost Retail
Inventory, Jan. 1 P320,000 P800,000
Sales 5,800,000
Purchases 2,100,000 6,000,000
Freight in 70,000
Net markups 400,000
Net markdowns 200,000
What is the ending inventory ay cost at December 31 using the FIFO retail inventory
method?
a. 420,000 b. 430,000 c. 440,000 d. 460,000