Camil Company is engaged in buying and selling of cleansing products. The following transactions and other information are available for the year ended December 31, 2017 Php 200,000 5,000,000 Inventory, January 1, 2017 Gross purchases, all under the credit terms 2/10, n/30 Purchase returns made by the company, all made before payment of accounts Gross sales Sales allowances granted Sales returns 80,000 7,380,000 30,000 180,000 At December 31, 2017, purchases costing Php100,000 were in transit, FOB shipping point. 80% of purchases made were settled within the discount period. Required: Determine the estimated cost of inventory at December 31, 2017, assuming that the company maintains sells its products allowing a 40% gross profit on sales.
Camil Company is engaged in buying and selling of cleansing products. The following transactions and other information are available for the year ended December 31, 2017 Php 200,000 5,000,000 Inventory, January 1, 2017 Gross purchases, all under the credit terms 2/10, n/30 Purchase returns made by the company, all made before payment of accounts Gross sales Sales allowances granted Sales returns 80,000 7,380,000 30,000 180,000 At December 31, 2017, purchases costing Php100,000 were in transit, FOB shipping point. 80% of purchases made were settled within the discount period. Required: Determine the estimated cost of inventory at December 31, 2017, assuming that the company maintains sells its products allowing a 40% gross profit on sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 12
Camil Company is engaged in buying and selling of cleansing products. The following
transactions and other information are available for the year ended December 31, 2017:
Php
200,000
5,000,000
Inventory, January 1, 2017
Gross purchases, all under the credit terms
2/10, n/30
Purchase returns made by the company, all
made before payment of accounts
Gross sales
Sales allowances granted
Sales returns
80,000
7,380,000
30,000
180,000
At December 31, 2017, purchases costing Php100,000 were in transit, FOB shipping
point.
80% of purchases made were settled within the discount period.
Required:
Determine the estimated cost of inventory at December 31, 2017, assuming that the
company maintains sells its products allowing a 40% gross profit on sales.
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