In 2020, RM Co. started operations with an inventory costing P200,000. For the 15 quarter of 20, the purchase and sales were as follows: February P380,000 510,000 e goods are sold at a gross profit of 20% of sales. For interim statement purposes, the January P50,000 240,000 March P704,00 P1,134,000 755,000 Total Purchases Sales 1,505,000 entory at the end of January, February and March, respectively are

In 2020, RM Co. started operations with an inventory costing P200,000. For the 15 quarter of 20, the purchase and sales were as follows: February P380,000 510,000 e goods are sold at a gross profit of 20% of sales. For interim statement purposes, the January P50,000 240,000 March P704,00 P1,134,000 755,000 Total Purchases Sales 1,505,000 entory at the end of January, February and March, respectively are

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

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 4MC

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CAC Co. provided these information for 2020: Inventory - January 1 : P400,000; Freight in : P300,000; Purchase Returns : P900,000; Inventory - December 31 : P500,000; Selling expenses: P1,250,000; Sales Discount: P250,000. The cost of sales is six times the selling expenses. How much is the gross purchases for 2020? A. P6,500,000 B. P6,700,000 C. P8,000,000 D. P8,200,000 E. answer not given
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