Assuming that net purchases was P90,000 during the year and that ending merchandise inventory was P20,000 less than beginning merchandise inventory of P250,000, how much was the cost of goods sold? a. P1,130,000 b. P670,000 c. P920,000 d. P1,170,000.

Q: Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods…

A: The monetary value connected with the products in inventory at the conclusion of an accounting…

Q: If the estimated rate of gross profit is 30%, what is the estimated cost of the inventory on…

A: Inventory refers to materials such as raw materials, finished products, and in-process goods that…

Q: Selected data for ABC Co. for 2020 are as follows: Decrease in merchandise inventory: P20,000…

A: Formula: Cost of goods sold = Disbursements for purchases + Decrease in inventory + Increase in…

Q: Assuming that net purchases cost R250 000 during the year. The closing inventory was of R4 000, and…

A: Answer purchases cost =  R250 000 closing inventory = R4 000 Opening  inventory = R30,000

Q: . Cost of goods sold is P7,400. Beginning inventory is P3,500 and ending 1. inventory is P4,000. If…

A: The cost of goods sold can be calculated by adding up net purchase and freight and deducting closing…

Q: If ending inventory is understated by $25,000, what effect will this have on cost of goods sold and…

A: Formula: Cost of goods sold = Beginning inventory + Purchases - Ending Inventory.

Q: Based on the following data, estimate the cost of ending merchandise inventory using the gross…

A: In gross profit method, cost of ending inventory is the difference between cost of goods available…

Q: Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count…

A: We’ll answer the second question since the exact one wasn’t specified and the first question is…

Q: ALOHA Company determined the following information for an inventory at year end. Historical Cost P…

A: Inventory at year end = Lower of Cost or Net realizable value where, Net realizable value =…

Q: Use the following information:           Net sales $ 205,000   Cost of goods sold   144,000…

A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…

Q: During the current year, merchandise is sold for $206,200 cash and $430,300 on account. The cost of…

A: The Gross Profit is figured by deducting the Cost of goods sold (COGS) from Total Sales. It is also…

Q: The net sales for Windmill Boatworks from January 1 until June 30 amount to $360,000. Gross profit…

A: Cost of goods sold = Sales - gross profit Given sales = $360,000 Gross profit = 25% of sales =…

Q: Cost of goods sold is P7,400. Beginning inventory is P3,500 and ending what were purchase returns…

A: Since there are multiple questions, we will answer only the first question. If you want the…

Q: Based on the following data, determine the cost of merchandise sold for November: $ 14,500 Increase…

A: Cost of Goods SoldCost of goods sold indicates the costs involved for the inventory sold by the…

Q: If beginning inventory is $40,000, purchases are $215,000, and ending inventory is $35,000, what is…

A: Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This…

Q: Rizza Co. has an average age of inventory equal to 25 days. If its end of year inventory level is…

A: Inventory days is a concept in costing that shows how much time it takes the firm to sale its…

Q: The cost of goods sold was computed at P12.250. Total sales for the year were P42.950, of which…

A: Introduction: Inventory turnover ratio: Division of Average inventory with cost of goods sold…

Q: For each of the following, calculate the cost of inventory reported on the balance sheet. (a) The…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Compute for the cost of ending inventory using average cost retail method. " The following…

A: Inventory that is left after the sale is known as ending inventory.

Q: Q1. As of December 321, 2021, Earth Mother’s Corporation physical inventory was $275,000, and its…

A: In this question, we will explain that, what is the reason behind the effect of the inventory…

Q: Fill in the blanks in the following separate income statements a through e. b. Sales $ 62,000 $…

A: Gross profit is calculated by deducting the cost of goods sold from the sales amount and net profit…

Q: Determine the Sales for the year, Gross Profit P240,000.00, Ending Inventory P120,000.00, Goods…

A: Sales=Goods available for sale+Gross Profit-Ending Inventory

Q: The following information was available for Oriole Company at December 31, 2022: beginning inventory…

A: Compute the average inventory.

Q: Beginning inventory of $40,000 plus purchases of $30,000 equals which of the following?   a.  Cost…

A: The cost of goods available for sale is the sum of inventory in the hand and the inventory purchased…

Q: The cost of goods for sale of Ram Products Inc. was P7, 645,000 and the ending inventory amounts to…

A: Cost of goods sold is estimated by subtracting ending inventory from cost of goods available from…

Q: The following information is available for Grace Company for 2020:  Disbursements for purchases…

A: Every business purchases goods and services for use in its business or operations. These can be cash…

Q: Calculating inventory turnover A7X corporation has ending inventory of $625,817, the cost of goods…

A: Inventory turnover is obtained by dividing the cost of goods sold by the ending inventory.…

Q: Using the following information, what is the amount of gross profit?​ Purchases $42,000 Merchandise…

A: Cost of Goods Sold = Opening stock + Net Purchases + Direct Expenses - Closing Stock…

Q: 1. Selected data for ABC Co. for 2020 are as follows: Decrease in merchandise inventory: P20,000…

A: Answer 1: Cost of Goods Sold = Beginning Inventory + Purchases – Ending Inventory Cost of goods…

Q: Metlock's Market recorded the following events involving a recent purchase of inventory: Received…

A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…

Q: Emeritus Company which used the FIFO retail inventory method provided the following information for…

A: Cost to retail ratio = (7,200,000/ 10,400,000) x 100                               = 69%

Q: During the current year, merchandise is sold for $237,500 cash and $625,000 on account. The cost of…

A: Gross profit means sales revenue earned over and above cost of goods that are sold to customers.…

Q: sing the gross profit method with the following cost data, estimate the cost of ending inventory.…

A: Ending inventory is the value of inventory remaining unsold at the end of the period.  The inventory…

Q: Nord Store’s perpetual accounting system indicated ending inventory of $20,000, cost of goodssold of…

A: Cost of inventory Shrinkage = Inventory as per records - Physical count inventory Gross profit =…

Q: Cost of Goods Sold is 60% of Sales, Purchases is P20,000, Inventory ending is P5,000 higher than…

A: The cost of goods sold includes the total cost of goods that are sold during the period.  Cost of…

Q: Cinco Company determined the following information for an inventory at year-end: P2,000,000…

A: Inventory is reported at lower of historical cost and net realizable value. Net realizable value is…

Q: The following items were taken from the records of FDN Trading: Purchases, P30,000; Purchase Returns…

A: Cost of goods sold = Purchases - Purchase returns + Freight on merchandise purchased = P30,000 -…

Q: During the current year, merchandise is sold for $714000. The cost of the merchandise sold is…

A: Gross profit = Sales - Cost of merchandise sold

Q: The following items were included in Diego Company’s inventory account on December 31, 2020:…

A: A consignment agreement is one in which items are left in the hands of a third party who is allowed…

Q: Pertaining below is information pertaining to Polyphemos Corporation: Cost P 24,000 190,000 26,000…

A: In the Average cost method of inventory valuation, the Cost-to-retail percentage is computed for all…

Q: AFW inc. reported these figures for its fiscal year (amounts in millions): Net sales $2,100 Cost of…

A: If the Ending Inventory is overstated therefore Cost of Goods Sold is Understated. Cost Of Goods…

Q: Bernie Bird Company provided the following information for the current year: Inventory, January 1…

A: Gross profit means the difference between the sale revenue and cost of production. Sale means the…

Q: Hull Company reported the following income statement information for the current year: Sales…

A: Computation of the correct gross profit is as follows:

Q: Selected financial information for Stuart Company for Year 4 follows: Sales $2,050,000 1,435,000…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: a. What is the inventory turnover?

A: Inventory Turnover is otherwise  called as stock turnover ratio. It is a measure which indicates…