Madison uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost P12 each. During the month, the company made two purchases: 500 units at P13 each and 2,000 units at P13.50 each. Madison also sold 2,150 units during the month. Using the FIFO method, what is the ending inventory? choices: P20,073 P18,600 P20,925 P18,950
Madison uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost P12 each. During the month, the company made two purchases: 500 units at P13 each and 2,000 units at P13.50 each. Madison also sold 2,150 units during the month. Using the FIFO method, what is the ending inventory? choices: P20,073 P18,600 P20,925 P18,950
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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2. Madison uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost P12 each. During the month, the company made two purchases: 500 units at P13 each and 2,000 units at P13.50 each. Madison also sold 2,150 units during the month. Using the FIFO method, what is the ending inventory?
choices:
P20,073
P18,600
P20,925
P18,950
3. On August 31, a flood at Lordgin Company's only warehouse caused severe damage to its entire inventory. Based on recent history, Lordgin has a gross profit of 25 percent of net sales. The following information is available from Lordgin's records for the eight months ended August 31: Inventory, January 1 P520,000; Net Purchases 4,060,000; Net Sales 5,200,000. A physical inventory disclosed usable damaged goods which Lordgin estimates can be sold for P70,000. Using the gross profit method, the estimated cost of goods sold for the eight months ended August 31 should be
choices:
P4,200,000.
P3,830,000
P3,900,000
P680,000
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