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The following data are given for ABC Co. on Dec. 31, 2019 are:I nventory, beg. P600,000 Purchases 2,530,000 Purchase return 15,000 Purchase allowance 5,000 Purchase discount 10,000 Freight-in 50,000 Sales 3,100,000 Sales return 100,000 Sales allowance 50,000Sales discount 150,000 1. If the gross profit rate is 25% on sales, what is the ending Inventory? 2. In the same question, assuming that gross profit rate is 25% on cost what should be the ending inventory? a. P750,000 b. P600,000 c. P750,000 d. P900,000

The following data are given for ABC Co. on Dec. 31, 2019 are:I nventory, beg. P600,000 Purchases 2,530,000 Purchase return 15,000 Purchase allowance 5,000 Purchase discount 10,000 Freight-in 50,000 Sales 3,100,000 Sales return 100,000 Sales allowance 50,000Sales discount 150,000 1. If the gross profit rate is 25% on sales, what is the ending Inventory? 2. In the same question, assuming that gross profit rate is 25% on cost what should be the ending inventory? a. P750,000 b. P600,000 c. P750,000 d. P900,000

Individual Income Taxes
Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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The following data are given for ABC Co. on Dec. 31, 2019 are:I

nventory, beg. P600,000

Purchases 2,530,000

Purchase return 15,000

Purchase allowance 5,000

Purchase discount 10,000

Freight-in 50,000

Sales 3,100,000

Sales return 100,000

Sales allowance 50,000Sales discount 150,000

1. If the gross profit rate is 25% on sales, what is the ending Inventory?

2. In the same question, assuming that gross profit rate is 25% on cost what should be the ending inventory?

a. P750,000
b. P600,000
c. P750,000
d. P900,000
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