1. Profit or loss computation The net sales of Eagle Company in 2020 is P580,000. The cost of goods manufactured is P480,000. The beginning inventories of Goods in Process and Finished goods are P82,000 and P65,000, respectively. The ending inventories are: Goods in Process-P75,000, Finished goods P55,000. The Selling Expenses and General & Administrative Expenses are 5% and 2.5% of Cost of sales, respectively. Required: Compute in good form the net income before tax for the year 2020
1. Profit or loss computation The net sales of Eagle Company in 2020 is P580,000. The cost of goods manufactured is P480,000. The beginning inventories of Goods in Process and Finished goods are P82,000 and P65,000, respectively. The ending inventories are: Goods in Process-P75,000, Finished goods P55,000. The Selling Expenses and General & Administrative Expenses are 5% and 2.5% of Cost of sales, respectively. Required: Compute in good form the net income before tax for the year 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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COLLEGE OF BUSINESS AND ACCOUNTANCY
INTERMEDIATE ACCOUNTING
Transcribed Image Text:1. Profit or loss computation
The net sales of Eagle Company in 2020 is P580,000. The cost of goods manufactured is
P480,000. The beginning inventories of Goods in Process and Finished goods are P82,000
and
P65,000, respectively. The ending inventories are: Goods in Process-P75,000, Finished goods
P55,000. The Selling Expenses and General & Administrative Expenses are 5% and 2.5% of
Cost of sales, respectively.
Required: Compute in good form the net income before tax for the year 2020
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