Epsilon Corp. reported the following information for the current year: Beginning inventory.. 5,000,000 26,000,000 2,000,000 3,500,000 1,500,000 40,000,000 3,000,000 500,000 1,000,000 Purchases. Freight In. Purchase returns and allowances. Purchase discounts... Sales.. Sales returns.. Sales allowances. Sales discounts. The physical count taken at year-end resulted in an ending inventory of P 4,000,000. At year- end, unsold merchandise out on consignment with selling price of P 1,000,000 are in the hands of a consignee. The gross profit was 40% on sales. 5. What is the cost of goods available for sale? A. P 28,000,000 B. P31,000,000 С. Р33,000,000 D. P 29,500,000 6. What is the cost of sales? A. P21,900,000 7. What is the estimated cost of inventory shortage? A. P1,800,000 B. P 22,200,000 C. P 21,300,000 D. P 24,000,000 B. P2,700,000 С.Р 1,200,000 D. P2,100,000

Epsilon Corp. reported the following information for the current year: Beginning inventory.. 5,000,000 26,000,000 2,000,000 3,500,000 1,500,000 40,000,000 3,000,000 500,000 1,000,000 Purchases. Freight In. Purchase returns and allowances. Purchase discounts... Sales.. Sales returns.. Sales allowances. Sales discounts. The physical count taken at year-end resulted in an ending inventory of P 4,000,000. At year- end, unsold merchandise out on consignment with selling price of P 1,000,000 are in the hands of a consignee. The gross profit was 40% on sales. 5. What is the cost of goods available for sale? A. P 28,000,000 B. P31,000,000 С. Р33,000,000 D. P 29,500,000 6. What is the cost of sales? A. P21,900,000 7. What is the estimated cost of inventory shortage? A. P1,800,000 B. P 22,200,000 C. P 21,300,000 D. P 24,000,000 B. P2,700,000 С.Р 1,200,000 D. P2,100,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 11E

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Question

100%

Epsilon Corp. reported the following information for the current year:
Beginning inventory.
Purchases.
.P
5,000,000
26,000,000
2,000,000
3,500,000
1,500,000
40,000,000
3,000,000
500,000
1,000,000
Freight In.
Purchase returns and allowances.
Purchase discounts..
Sales....
Sales returns.
Sales allowances.
Sales discounts.
The physical count taken at year-end resulted in an ending inventory of P 4,000,000. At year-
end, unsold merchandise out on consignment with selling price of P 1,000,000 are in the hands
of a consignee. The gross profit was 40% on sales.
5. What is the cost of goods available for sale?
A. P 28,000,000
6. What is the cost of sales?
A. P21,900,000
7. What is the estimated cost of inventory shortage?
A. P1,800,000
В. Р31,000,000
С. Р 3,000,000
D. P 29,500,000
В. Р 22,200,000
C. P21,300,000
D. P 24,000,000
В. Р 2,700,000
С.Р 1,200,000
D. P2,100,000

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