Dara Company's accounting records indicated the following information for 2021: Inventory- January 1 500,000 Purchases 2,500,000 Sales 3,200,000 A physical inventory taken on Dec. 31, 2021 resulted in an ending inventory of P 500,000. Dara"s gross profit on sales has remained constant at 25% in recent years. Dara suspects some inventory may have been taken by a new employee. REQUIRED: ON December 31, 2021, what is the estimated cost of missing inventory?

Dara Company's accounting records indicated the following information for 2021: Inventory- January 1 500,000 Purchases 2,500,000 Sales 3,200,000 A physical inventory taken on Dec. 31, 2021 resulted in an ending inventory of P 500,000. Dara"s gross profit on sales has remained constant at 25% in recent years. Dara suspects some inventory may have been taken by a new employee. REQUIRED: ON December 31, 2021, what is the estimated cost of missing inventory?

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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Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Cost of Goods Sold and Income Statement Schuch Company presents you with the following account balances taken from its December 31 adjusted trial balance: Additional data: 1. A physical count reveals an ending-inventory of 22,500 on December 31. 2. Twenty-five thousand shares of common stock have been outstanding the entire year. 3. The income tax rate is 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Schuchs cost of goods sold. 2. Prepare a multiple-step income statement. 3. Prepare a single-step income statement.
Santanina Company’s accounting records indicated the following for 2021:Inventory, January 1 5,000,000Purchase 15,000,000Sales 22,000,000A physical inventory taken on December 31, 2022 resulted in an ending inventory of P5,500,000. Thegross profit on sales remained constant at 40% in recent years. Santanina Company suspects thatsome inventory may have been taken by a new employee. At December 31, 2021, what is theestimated cost of missing inventory?
ABC Company's accounting records indicated the following information for 2020: Inventory, January 1 500,000 Purchases 2,500,000 Sales 3,200,000 A physical inventory taken on December 31, 2020 resulted in an ending inventory of P500,000. Gross profit on sales has remained constant at 25 percent in recent years. The company suspects some inventory may have been taken by a new employee. A. P500,000 B. P50,000 C. P100,000 D. PO
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Mr. J, the owner of ABC Company engaged in the sale of XYZ products, presented you with the following data as of February 28, 2021. Inventory, beginning Inventory, ending Gross Profit Rate 50,000 75,000 20% based on Sales Cost of Goods Sold 100,000 Sales are anticipated to increase at a rate of 10% each month in the next four months. 60% of the sales made were on account. Percentage of collection based on previous operations: 20% at the month of sale 30% the following month 30% after 2 months 20% after 3 months. Cash purchases comprise 60% of the total purchases. Purchases are projected to remain constant within the next four months. Percentage of payments based on previous operations: 10% at the month of sale 30% the following month 20% after 2 months 40% after 3 months. By March, Mr. J will receive the proceeds from his approved short-term loan of 15,000 with 3% annual interest contracted last January. Monthly interests will be paid beginning in March. This coming May, Mr. J expects…
The accounting records of DUB Co. showed these data for 2020: Inventory, January 1 P500,000 Purchases P2,500,000 Sales P3,200,000. A physical inventory taken on December 31, 2020 resulted in an ending inventory of P500,000. Gross profit on sales has remained constant at 25% in recent years. The company suspects some inventory may have been taken by a new employee. What is the estimated cost of missing inventory?
1. Lams Company's accounting records indicated the following information: Inventory, January 1 P1,000,000; Purchases 5,000,000; Sales 6,400,000.A physical inventory taken on December 31, 2020, revealed actual ending inventory at cost was P1,150,000. Lams' gross profit on sales has regularly been about 25 percent in recent years. The company believes some inventory may have been stolen during the year. What is the estimated amount of missing inventory at December 31, 2020? a. P350,000 b. P200,000 c. P450,000 d. P50,000 2. The following information is available for Tyron Corp. for its most recent year: Net Sales P3,600,000; Freight-in P90,000; Ending Inventory P240,000. The gross margin is 40 percent of net sales. What is the cost of goods available for sale? a. P2,400,000 b. P2,440,000 c. P1,680,000 d. P1,920,000 3. On October 1, Dennis Company purchased P200,000 face value 12% bonds for 98 plus accrued interest and brokerage fees and…
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52.ZZZ Company’s accounting records indicated the following for 2020: Inventory, January 1 P6,000,000 Purchases 20,000,000 Sales 30,000,000 A physical inventory taken on December 31, 2020 resulted in an ending inventory of P4,500,000. The gross profit on sales remained constant at 30% in recent years. Benguet suspects some inventory may have been taken by a new employee. At December 31, 2020 what is the estimated cost of missing inventory?
Gecelle Company reported during the current year beginning inventory P500,000, net purchasesP2,500,000 and net sales P3,200,000. A physical count at year-end resulted in an inventory of P575,000.The gross profit on sales had remained constant at 25%. The entity suspected that sme inventory mayhave been taken by a new employee.What is the estimated cost of missing inventory at year-end?
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