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? a. P292,500 b. P75,000 c. P210,000 d. P82,500
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? a. P292,500 b. P75,000 c. P210,000 d. P82,500
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
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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?
a. P292,500
b. P75,000
c. P210,000
d. P82,500
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