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? * , O P210,000 O P292,500 O P82,500 D P75,000
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? * , O P210,000 O P292,500 O P82,500 D P75,000
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
Related questions
Question
Question 33
Choose the correct answer from the choices.
![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? *
O P210,000
P292,500
P82,500
P75,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F65360ae6-94bc-4184-9b57-6430967e6be5%2Fa94a84d6-cb25-48a2-be4c-2ec5a4325257%2Fr2tzev6_processed.png&w=3840&q=75)
Transcribed Image Text: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? *
O P210,000
P292,500
P82,500
P75,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning