The following information is available for the Krypton Company for the three months ended June 31 of this year: Inventory, January 1 P 450,000; Purchases 1,800,000; Sales 2,400,000. The gross margin was estimated to be 25 percent of sales. What is the estimated inventory balance at June 31? choices: P562,500 P450,000 P350,000 P600,000
The following information is available for the Krypton Company for the three months ended June 31 of this year: Inventory, January 1 P 450,000; Purchases 1,800,000; Sales 2,400,000. The gross margin was estimated to be 25 percent of sales. What is the estimated inventory balance at June 31? choices: P562,500 P450,000 P350,000 P600,000
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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1. The following information is available for the Krypton Company for the three months ended June 31 of this year: Inventory, January 1 P 450,000; Purchases 1,800,000; Sales 2,400,000. The gross margin was estimated to be 25 percent of sales. What is the estimated inventory balance at June 31?
choices:
P562,500
P450,000
P350,000
P600,000
2. Tretorn Company began operations in 2018. During the first two years of operations, Tretorn made undiscovered errors in taking its year-end inventories that overstated 2018 ending inventory by P50,000 and understated 2019 ending inventory by P40,000. The combined effect of these errors on reported income for the year 2018, 2019 and 2020 respectively is
choices:
P50,000 understated; P90,000 overstated and P40,000 understated
P50,000 overstated; P90,000 understated and P40,000 overstated
P50,000 overstated; P40,000 understated and not affected
P50,000 overstated; P90,000 understated and not affected
3. Golden Company maintains a markup of 60 percent based on cost. The company's selling and administrative expenses average 30 percent of sales. Annual sales were P1,440,000. Golden's operating profit for the year is
choices:
P144,000
P432,000
P108,000
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