LAVARN Company sells milled rice in Isabela Province. On September 15, a flood destroyed the company's warehouse, along with all its inventory on hand. No inventory was salvaged. The inventory on hand as of August 31 had a selling price of P7,500,000. Purchases made from September 1 until the flood totaled P2,000,000 and sales of P9,500,000 were made on the same period. The gross profit on sales is 30%. What is the estimated ending inventory? 2,850,000 O 2,192,308 850,000 600,000 O Answer not given
LAVARN Company sells milled rice in Isabela Province. On September 15, a flood destroyed the company's warehouse, along with all its inventory on hand. No inventory was salvaged. The inventory on hand as of August 31 had a selling price of P7,500,000. Purchases made from September 1 until the flood totaled P2,000,000 and sales of P9,500,000 were made on the same period. The gross profit on sales is 30%. What is the estimated ending inventory? 2,850,000 O 2,192,308 850,000 600,000 O Answer not given
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 1CP
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![LAVARN Company sells milled rice in Isabela Province. On September 15, a
flood destroyed the company's warehouse, along with all its inventory on
hand. No inventory was salvaged. The inventory on hand as of August 31
had a selling price of P7,500,000. Purchases made from September 1 until
the flood totaled P2,000,000 and sales of P9,500,000 were made on the
same period. The gross profit on sales is 30%. What is the estimated
ending inventory?
O 2,850,000
O 2,192,308
850,000
600,000
O Answer not given](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc01a3c17-09b4-4283-b6b5-01cddbdae950%2F9a6b24d7-ede4-4ac2-937e-3bc549664f47%2Fsau0ct_processed.png&w=3840&q=75)
Transcribed Image Text:LAVARN Company sells milled rice in Isabela Province. On September 15, a
flood destroyed the company's warehouse, along with all its inventory on
hand. No inventory was salvaged. The inventory on hand as of August 31
had a selling price of P7,500,000. Purchases made from September 1 until
the flood totaled P2,000,000 and sales of P9,500,000 were made on the
same period. The gross profit on sales is 30%. What is the estimated
ending inventory?
O 2,850,000
O 2,192,308
850,000
600,000
O Answer not given
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