At December 31, 2020, the following information was available from Pharoah Co.'s accounting records: Cost Retail
Inventory, 1/1/20 $139000 $195000
Purchases 633000 955000
Additional markups 34000
Available for sale $772000 $1184000
Sales for the year totaled $1050000. Markdowns amounted to $9200. Under the lower-of-cost-or-market retail inventory method, Pharoah's inventory at December 31, 2020 was:.
a. $81120.
b. $93080.
c. $267800.
d. $87100.

Pharoah's inventory at December 31, 2020 was $81,120. The right answer is a.

Explanation:

In order to calculate Pharoah's inventory at December 31, 2020 we would have to calculate the following formula:

Ending inventory at cost=Ending inventory at retail*Cost to Retail ratio

Cost to Retail ratio=$772,000 ÷ $1,184,000

Cost to Retail ratio= 0.65

Ending inventory at retail=($1,184,000 – $9,200 – $1,050,000)

Ending inventory at retail=$124,800

Therefore, Ending inventory at cost=$124,800× 0.65

Ending inventory at cost=$81,120

Pharoah's inventory at December 31, 2020 was $81,120

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

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