What is the estimated cost of the missing inventory on December 31,2021?a. P151,000b. P165,000c. P420,000d. P585,000 Inventory Estimation - Gross Profit Rate MethodThe following information appears in Jasper Company's records for the year ended December 31:Inventory, January 19 650,000Purchases2,300,000Purchase returns80,000Freight-in60,000Sales3,400,000Sales discounts20,000Sales returns30,000On December 31, a physical count revealed that the ending inventory was only P420,000. Jasper's gross profit on netsales has remained constant at 30 percent in recent years. Jasper suspects that some inventory may have beenpilfered by one of the company's employees. On December 31, what is the estimated cost of missing inventory?

The ending inventory is the difference between the cost of goods available for sale and cost of…

Answered: What is the estimated cost of the…

What is the estimated cost of the missing inventory on December 31,2021? a. P151,000 b. P165,000 c. P420,000 d. P585,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 38BE: Inventory Analysis Callahan Company reported the following information for the current year....

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Question

What is the estimated cost of the missing inventory on December 31,2021?

a. P151,000

b. P165,000

c. P420,000

d. P585,000

Inventory Estimation - Gross Profit Rate Method
The following information appears in Jasper Company's records for the year ended December 31:
Inventory, January 1
9 650,000
Purchases
2,300,000
Purchase returns
80,000
Freight-in
60,000
Sales
3,400,000
Sales discounts
20,000
Sales returns
30,000
On December 31, a physical count revealed that the ending inventory was only P420,000. Jasper's gross profit on net
sales has remained constant at 30 percent in recent years. Jasper suspects that some inventory may have been
pilfered by one of the company's employees. On December 31, what is the estimated cost of missing inventory?

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