Seiz Company used perpetual inventory system to record inventory transactions for 2021. Inventory P 1,900,000 Sales 6,500,000 Sales returns 150,000 Cost of goods sold 4,600,000 Inventory losses 120,000 On December 24, the entity recorded a P 150,000 credit sales of goods costing P 100,000. These goods were sold on FOB destination point terms and were in transit on December 31. The goods were included in the physical count. The inventory on December 31 determined by physical count has a cost of P 2,000,000 and a net realizable value of P 1,700,000. Any inventory writedown is not yet recorded. What amount should be reported as Cost of Goods Sold for 2020? a. 5,020,000 b. 4,500,000 c. 4,720,000 d. 4,920,000
Seiz Company used perpetual inventory system to record inventory transactions for 2021.
Inventory P 1,900,000
Sales 6,500,000
Sales returns 150,000
Cost of goods sold 4,600,000
Inventory losses 120,000
On December 24, the entity recorded a P 150,000 credit sales of goods costing P 100,000.
These goods were sold on FOB destination point terms and were in transit on December 31. The goods were included in the physical count. The inventory on December 31 determined by physical count has a cost of P 2,000,000 and a net realizable value of P 1,700,000. Any inventory writedown is not yet recorded.
What amount should be reported as Cost of Goods Sold for 2020?
a. 5,020,000
b. 4,500,000
c. 4,720,000
d. 4,920,000
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