Phillips Supply uses a periodic inventory system but needs to determine the approximate amountof inventory at the end of each month without taking a physical inventory. Phillips has provided thefollowing inventory data: Cost Selling Retail Selling Price Inventory of merchandise, June 30Rs300,000Rs500,000Purchases during July222,000400,000Goods available for sale during July522,000900,000Net sales during July 600,000 a.Estimate the cost of goods sold and the cost of the July 31 ending inventory using the retail method of evaluation.b.Was the cost of Phillips’s inventory, as a percentage of retail selling prices, higher or lower in July than it was in June? Explain.

Name: Phillips Supply uses a periodic inventory system but needs to determin
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Phillips Supply uses a periodic inventory system but needs to determine the approximate amountof inventory at the end of each month without taking a physical inventory. Phillips has provided thefollowing inventory data: Cost Selling Retail Selling Pr

a) Cost of Goods Sold It refers to the cost incurred by a company that is directly related to…

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Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

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Phillips Supply uses a periodic inventory system but needs to determine the approximate amountof inventory at the end of each month without taking a physical inventory. Phillips has provided thefollowing inventory data:

	Cost Selling	Retail Selling Price
Inventory of merchandise, June 30	Rs300,000	Rs500,000
Purchases during July	222,000	400,000
Goods available for sale during July	522,000	900,000
Net sales during July		600,000

a.Estimate the cost of goods sold and the cost of the July 31 ending inventory using the retail method of evaluation.

b.Was the cost of Phillips’s inventory, as a percentage of retail selling prices, higher or lower in July than it was in June? Explain.

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