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please type your answer, answer all parts and provide a brief explination and show ALL workProblem 2 (15%):
Tangor Inc. uses the conventional retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2018.
At Cost At Retail
Inventory, 10/1/18 52,000 78,000
Freight in 16,600
Markdowns (net) 3,600
Markups 9,000
Markup cancellations 2,000
Purchases 272,000 423,000
Sales 385,000
Purchase returns 5,600 8,000
Normal spoilage and breakage 10,000
Employee discounts 5,000
Required:
(a) Using the conventional retail method, prepare a schedule computing inventory at 10/31/18.
(b) What factors might cause the difference between computed inventory and the physical count.
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