Epsilon Corp. reported the following information for the current year: Beginning inventory.. 5,000,000 26,000,000 2,000,000 3,500,000 1,500,000 40,000,000 3,000,000 500,000 1,000,000 Purchases. Freight In. Purchase returns and allowances. Purchase discounts... Sales.. Sales returns.. Sales allowances. Sales discounts. The physical count taken at year-end resulted in an ending inventory of P 4,000,000. At year- end, unsold merchandise out on consignment with selling price of P 1,000,000 are in the hands of a consignee. The gross profit was 40% on sales. 5. What is the cost of goods available for sale? A. P 28,000,000 B. P31,000,000 С. Р33,000,000 D. P 29,500,000 6. What is the cost of sales? A. P21,900,000 7. What is the estimated cost of inventory shortage? A. P1,800,000 B. P 22,200,000 C. P 21,300,000 D. P 24,000,000 B. P2,700,000 С.Р 1,200,000 D. P2,100,000

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
icon
Related questions
Question
100%
Epsilon Corp. reported the following information for the current year:
Beginning inventory.
Purchases.
.P
5,000,000
26,000,000
2,000,000
3,500,000
1,500,000
40,000,000
3,000,000
500,000
1,000,000
Freight In.
Purchase returns and allowances.
Purchase discounts..
Sales....
Sales returns.
Sales allowances.
Sales discounts.
The physical count taken at year-end resulted in an ending inventory of P 4,000,000. At year-
end, unsold merchandise out on consignment with selling price of P 1,000,000 are in the hands
of a consignee. The gross profit was 40% on sales.
5. What is the cost of goods available for sale?
A. P 28,000,000
6. What is the cost of sales?
A. P21,900,000
7. What is the estimated cost of inventory shortage?
A. P1,800,000
В. Р31,000,000
С. Р 3,000,000
D. P 29,500,000
В. Р 22,200,000
C. P21,300,000
D. P 24,000,000
В. Р 2,700,000
С.Р 1,200,000
D. P2,100,000
Transcribed Image Text:Epsilon Corp. reported the following information for the current year: Beginning inventory. Purchases. .P 5,000,000 26,000,000 2,000,000 3,500,000 1,500,000 40,000,000 3,000,000 500,000 1,000,000 Freight In. Purchase returns and allowances. Purchase discounts.. Sales.... Sales returns. Sales allowances. Sales discounts. The physical count taken at year-end resulted in an ending inventory of P 4,000,000. At year- end, unsold merchandise out on consignment with selling price of P 1,000,000 are in the hands of a consignee. The gross profit was 40% on sales. 5. What is the cost of goods available for sale? A. P 28,000,000 6. What is the cost of sales? A. P21,900,000 7. What is the estimated cost of inventory shortage? A. P1,800,000 В. Р31,000,000 С. Р 3,000,000 D. P 29,500,000 В. Р 22,200,000 C. P21,300,000 D. P 24,000,000 В. Р 2,700,000 С.Р 1,200,000 D. P2,100,000
Expert Solution
steps

Step by step

Solved in 4 steps with 6 images

Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub