its inventory at month-end.
Chapter10: Inventory
Section: Chapter Questions
Problem 3PA: Trini Company had the following transactions for the month. Calculate the cost of goods sold dollar...
Related questions
Question

Transcribed Image Text:Use the following information for the next two questions:
Thursday Co. is estimating the cost of its inventory at month-end.
The accountant determined the following:

Transcribed Image Text:20,000 P 28,000
9. How much are the ending inventory and cost of sales
oter 8
454
Cost
Retail
110,600
160,600
Inventory, January 1
4,000
Purchases
End
Freight-In
Purchase discounts
1,000
end
10,400
17,200
Purchase returns
2,000
3,000
Departmental Transfers-In
Departmental Transfers-Out
Markups
Markup cancellations
1,600
2,400
12,000
PR
4,000
24,000
YO
Markdowns
ra
Markdown cancellations
6,000
in
Additional information:
A loss of P10,000 was recognized during the period for
damaged goods. The goods have a retail value of P14,000.
• Gross sales for the period amounted to P87,600. Sales returns
and discounts amounted to P5,000 and P2,000, respectively.
Employee discounts, treated as outright deduction to sale
price, amounted to P1,000.
Normal of P400 was subsumed to cost of sales.
spoilage
8. How much are the ending inventory and cost of sales
respectively, under the average cost method?
a. 46,412; 67,188
b. 48,981; 64,619
c. 49,126; 64,474
d. 52,023; 61,577
9. How much are the ending inventory and cost of
respectively, under the FIFO method?
a. 49,920; 63,680
b. 47,588; 66,012
c. 52,266; 61,334
d. 44,927; 68,673
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images

Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage

College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage

College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub

Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning

Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning