Information pertaining to the inventory of Javelin Company for the ended December 31, 2022 follows: Beginning inventory 200,000* Ending inventory 300,000** Total purchases 830,000 Purchases returns 35,000 Freight-in 10,000 Purchase discounts 5,000 *Includes items A and B costing P20,000 and P30,000, respectively. The net realizable value of item A is P15,000 and item B is P27,000. **Includes cost of items A and B still unsold at the end of the year. The net realizable value of A is P23,000 and item B is P29,000. How much is the cost of goods sold under the direct method of accounting for write-off and reversal of write-down of inventories?
Information pertaining to the inventory of Javelin Company for the ended December 31, 2022 follows: Beginning inventory 200,000* Ending inventory 300,000** Total purchases 830,000 Purchases returns 35,000 Freight-in 10,000 Purchase discounts 5,000 *Includes items A and B costing P20,000 and P30,000, respectively. The net realizable value of item A is P15,000 and item B is P27,000. **Includes cost of items A and B still unsold at the end of the year. The net realizable value of A is P23,000 and item B is P29,000. How much is the cost of goods sold under the direct method of accounting for write-off and reversal of write-down of inventories?
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...
Related questions
Question
100%
61. Information pertaining to the inventory of Javelin Company for the ended December 31, 2022 follows:
Beginning inventory 200,000*
Ending inventory 300,000**
Total purchases 830,000
Purchases returns 35,000
Freight-in 10,000
Purchase discounts 5,000
*Includes items A and B costing P20,000 and P30,000, respectively. The net realizable value of item A is P15,000 and item B is P27,000.
**Includes cost of items A and B still unsold at the end of the year. The net realizable value of A is P23,000 and item B is P29,000.
How much is the cost of goods sold under the direct method of accounting for write-off and reversal of write-down of inventories?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT