Annanina Company reported the following information for the current year: Beginning inventory 5,000,000 Purchases 26,000,000 Freight in 2,000,000 Purchase returns and allowances 3,500,000 Purchase discounts 1,500,000 Sales 40,000,000 Sales returns 3,000,000 Sales allowances 500,000 Sales discounts 1,000,000 A physical inventory taken at year-end resulted in an ending inventory of P4,000,000. At year-end, unsold goods out on consignment with selling price of P1,000,000 are in the hands of a consignee. The gross profit was 40% on sales. 1. What is the cost of goods available for sale? 2. Refer to Annanina Company. What is the cost of goods sold? 3. Refer to Annanina Company. What is the estimated cost of inventory shortage?
Annanina Company reported the following information for the current year: Beginning inventory 5,000,000 Purchases 26,000,000 Freight in 2,000,000 Purchase returns and allowances 3,500,000 Purchase discounts 1,500,000 Sales 40,000,000 Sales returns 3,000,000 Sales allowances 500,000 Sales discounts 1,000,000 A physical inventory taken at year-end resulted in an ending inventory of P4,000,000. At year-end, unsold goods out on consignment with selling price of P1,000,000 are in the hands of a consignee. The gross profit was 40% on sales. 1. What is the cost of goods available for sale? 2. Refer to Annanina Company. What is the cost of goods sold? 3. Refer to Annanina Company. What is the estimated cost of inventory shortage?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Annanina Company reported the following information for the current year:
| Beginning inventory | 5,000,000 |
| Purchases | 26,000,000 |
| Freight in | 2,000,000 |
| Purchase returns and allowances | 3,500,000 |
| Purchase discounts | 1,500,000 |
| Sales | 40,000,000 |
| Sales returns | 3,000,000 |
| Sales allowances | 500,000 |
| Sales discounts | 1,000,000 |
A physical inventory taken at year-end resulted in an ending inventory of P4,000,000. At year-end, unsold goods out on consignment with selling price of P1,000,000 are in the hands of a consignee. The gross profit was 40% on sales.
1. What is the cost of goods available for sale?
2. Refer to Annanina Company. What is the cost of goods sold?
3. Refer to Annanina Company. What is the estimated cost of inventory shortage?
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