5. The following information was taken from the records of Afternoon Co. Lan. 1, 20x1 29,000 5,000 20,000 June 30, 20x1 45,000 6,000 Accounts payable Raw materials 27,000 Work in process Finished goods 23,000 ? Additional information: Afternoon Co. paid P20,000 for accounts payable, after deductions of P2,500 for purchase returns and P5,000 for purchase discounts. Afternoon Co. paid total freight of P1,000 on the purchases. The costs of direct labor and factory overhead during the period were P16,000 and P6,000, respectively. Sales from Jan. 1 to June 30 were P75,000, sales returns were P15,000, and sales discounts were P5,000. The gross profit rate based on cost is 33 1/3%. How much is the finished goods ending inventory? a. 29,000 b. 32,000 с. 33,600 d. 35,750

5. The following information was taken from the records of Afternoon Co. Lan. 1, 20x1 29,000 5,000 20,000 June 30, 20x1 45,000 6,000 Accounts payable Raw materials 27,000 Work in process Finished goods 23,000 ? Additional information: Afternoon Co. paid P20,000 for accounts payable, after deductions of P2,500 for purchase returns and P5,000 for purchase discounts. Afternoon Co. paid total freight of P1,000 on the purchases. The costs of direct labor and factory overhead during the period were P16,000 and P6,000, respectively. Sales from Jan. 1 to June 30 were P75,000, sales returns were P15,000, and sales discounts were P5,000. The gross profit rate based on cost is 33 1/3%. How much is the finished goods ending inventory? a. 29,000 b. 32,000 с. 33,600 d. 35,750

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

Offic
Afternoon Co.
Util
Lan. 1, 20x1
29,000
June 30, 20x1
45,000
to
Accounts payable
Raw materials
5,000
6,000
Work in process
Finished goods
20,000
27,000
23,000
Additional information:
Afternoon. Co. paid P20,000 for accounts payable, after
deductions of P2,500 for purchase returns and P5,000 for
purchase discounts.
Afternoon Co. paid total freight of P1,000 on the purchases.
The costs of direct labor and factory overhead during the
period were P16,000 and P6,000, respectively.
Sales from Jan. 1 to June 30 were P75,000, sales returns were
P15,000, and sales discounts were P5,000.
The gross profit rate based on cost is 33 1/3%.
How much is the finished goods ending inventory?
a. 29,000
b. 32,000
с. 33,600
d. 35,750

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