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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PROBLEM 14.
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?
PROBLEM 15.
Desiree Company provided the following data:
COST
SELLING PRICE
Inventory, Jan. 1
500,000
770,000
Purchases
3,070,000
4,300,000
Transportation in
70,000
Purchase returns
25,000
40,000
Sales return
80,000
Sales discount
20,000
Purchase discount
45,000
Markup
100,000
Markdown
350,000
Cancellation of markup
30,000
Cancellation of markdowns
10,000
Sales
4,000,000
REQUIRED: Compute the ending inventory using the conservative and average cost retail
method.?
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