Brooke Company used a perpetual inventory system. At the end of 2012, the inventory account was P360,000 and P30,000 of those goods. included in ending inventory were purchased FOB shipping point and did not arrive until 2013. Purchases in 2013 were P3,000,000. The perpetual inventory records showed an ending inventory of P420,000 for 2013. A physical count at the end of 2013 showed an inventory of P380,000. Inventory shortages are included in cost of goods sold. What amount should be reported as cost of goods sold for 2013?
Brooke Company used a perpetual inventory system. At the end of 2012, the inventory account was P360,000 and P30,000 of those goods. included in ending inventory were purchased FOB shipping point and did not arrive until 2013. Purchases in 2013 were P3,000,000. The perpetual inventory records showed an ending inventory of P420,000 for 2013. A physical count at the end of 2013 showed an inventory of P380,000. Inventory shortages are included in cost of goods sold. What amount should be reported as cost of goods sold for 2013?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...
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Transcribed Image Text:Brooke Company used a perpetual inventory system. At the end of
2012, the inventory account was P360,000 and P30,000 of those goods.
included in ending inventory were purchased FOB shipping point and
did not arrive until 2013. Purchases in 2013 were P3,000,000. The
perpetual inventory records showed an ending inventory of P420,000
for 2013. A physical count at the end of 2013 showed an inventory of
P380,000. Inventory shortages are included in cost of goods sold. What
amount should be reported as cost of goods sold for 2013?
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