A company's inventory was destroyed in a fire on January 28, 2020. The company's December 31, 2019 inventory had a cost of P40P0,000. The company's gross profit has consistently been 30% of sales. During January the company purchased merchandise costing P360,000 and sales of P500,000 at regular selling prices. What is the estimated cost of the inventory that was destroyed on January 28, 2020?
A company's inventory was destroyed in a fire on January 28, 2020. The company's December 31, 2019 inventory had a cost of P40P0,000. The company's gross profit has consistently been 30% of sales. During January the company purchased merchandise costing P360,000 and sales of P500,000 at regular selling prices. What is the estimated cost of the inventory that was destroyed on January 28, 2020?
Chapter10: Inventory
Section: Chapter Questions
Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...
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A company's inventory was destroyed in a fire on January 28, 2020. The company's December 31, 2019 inventory had a cost of P40P0,000. The company's gross profit has consistently been 30% of sales. During January the company purchased merchandise costing P360,000 and sales of P500,000 at regular selling prices.
What is the estimated cost of the inventory that was destroyed on January 28, 2020?
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