Camil Company is engaged in buying and selling of cleansing products. The following transactions and other information are available for the year ended December 31, 2017 Php 200,000 5,000,000 Inventory, January 1, 2017 Gross purchases, all under the credit terms 2/10, n/30 Purchase returns made by the company, all made before payment of accounts Gross sales Sales allowances granted Sales returns 80,000 7,380,000 30,000 180,000 At December 31, 2017, purchases costing Php100,000 were in transit, FOB shipping point. 80% of purchases made were settled within the discount period. Required: Determine the estimated cost of inventory at December 31, 2017, assuming that the company maintains sells its products allowing a 40% gross profit on sales.

Camil Company is engaged in buying and selling of cleansing products. The following transactions and other information are available for the year ended December 31, 2017 Php 200,000 5,000,000 Inventory, January 1, 2017 Gross purchases, all under the credit terms 2/10, n/30 Purchase returns made by the company, all made before payment of accounts Gross sales Sales allowances granted Sales returns 80,000 7,380,000 30,000 180,000 At December 31, 2017, purchases costing Php100,000 were in transit, FOB shipping point. 80% of purchases made were settled within the discount period. Required: Determine the estimated cost of inventory at December 31, 2017, assuming that the company maintains sells its products allowing a 40% gross profit on sales.

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 48E

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