Problem 13-2 (AICPA Adapted) Celibacy Company provided the following information for the current year: Beginning inventory Purchases Purchase returns Freight in Sales Sales discounts Sales returns 650,000 2,300,000 80,000 60,000 3,400,000 20,000 30,000 At year-end, a physical inventory revealed that the ending inventory was only P420,000. The gross profit on sales has remained constant at 30%. The entity suspects that some inventory may have been pilfered by one of the employees. What is the estimated cost of missing inventory at year-end? а. 151,000 b. 165,000 с. 420,000 d. 585,000

Problem 13-2 (AICPA Adapted) Celibacy Company provided the following information for the current year: Beginning inventory Purchases Purchase returns Freight in Sales Sales discounts Sales returns 650,000 2,300,000 80,000 60,000 3,400,000 20,000 30,000 At year-end, a physical inventory revealed that the ending inventory was only P420,000. The gross profit on sales has remained constant at 30%. The entity suspects that some inventory may have been pilfered by one of the employees. What is the estimated cost of missing inventory at year-end? а. 151,000 b. 165,000 с. 420,000 d. 585,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 37BE: Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was...

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