The following information appears on the Kimchi Jjigae Company’s records for the year ended December 31: Inventory, January 1- P325,000; Purchases- P1,150,000; Purchase returns- P40,000; Freight-in- P30,000; Sales- P1,700,000; Sales returns- P25,000 On December 31, a physical inventory revealed that the ending inventory was only P210,000. Kimchi Jjigae’s gross profit on net sales has remained constant at 30% in recent years. Kimchi Jjigae suspects that some inventory may have been pilfered by one of the company’s employees. At December 31, what is the estimated cost of inventory?
The following information appears on the Kimchi Jjigae Company’s records for the year ended December 31: Inventory, January 1- P325,000; Purchases- P1,150,000; Purchase returns- P40,000; Freight-in- P30,000; Sales- P1,700,000; Sales returns- P25,000 On December 31, a physical inventory revealed that the ending inventory was only P210,000. Kimchi Jjigae’s gross profit on net sales has remained constant at 30% in recent years. Kimchi Jjigae suspects that some inventory may have been pilfered by one of the company’s employees. At December 31, what is the estimated cost of inventory?
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
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The following information appears on the Kimchi Jjigae Company’s records for the year ended December 31:
Inventory, January 1- P325,000;
Purchases- P1,150,000;
Purchase returns- P40,000;
Freight-in- P30,000;
Sales- P1,700,000;
Sales returns- P25,000
On December 31, a physical inventory revealed that the ending inventory was only P210,000. Kimchi Jjigae’s gross profit on net sales has remained constant at 30% in recent years. Kimchi Jjigae suspects that some inventory may have been pilfered by one of the company’s employees. At December 31, what is the estimated cost of inventory?
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