A company's inventory was destroyed in a fire on January 28, 2020. The company's December 31, 2019 inventory had a cost of P40P0,000. The company's gross profit has consistently been 30% of sales. During January the company purchased merchandise costing P360,000 and sales of P500,000 at regular selling prices. What is the estimated cost of the inventory that was destroyed on January 28, 2020?

A company's inventory was destroyed in a fire on January 28, 2020. The company's December 31, 2019 inventory had a cost of P40P0,000. The company's gross profit has consistently been 30% of sales. During January the company purchased merchandise costing P360,000 and sales of P500,000 at regular selling prices. What is the estimated cost of the inventory that was destroyed on January 28, 2020?

Name: A company's inventory was destroyed in a fire on January 28, 2020. The
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Description: A company's inventory was destroyed in a fire on January 28, 2020. The company's December 31, 2019 inventory had a cost of P40P0,000. The company's gross profit has consistently been 30% of sales. During January the company purchased merchandise cost

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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