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PROBLEMS PROBLEM 1: TRUE OR FALSE 1. If sales are P200,000 and cost of goods sold is P150,000, the gross profit rate based on cost is 25%. 2. If the gross profit rate based on sales is 40%, the gross profit rate based on cost is 50%. 3. If the gross profit rate based on cost is 33.33%, the gross profit rate based on sales is 25%.

PROBLEMS PROBLEM 1: TRUE OR FALSE 1. If sales are P200,000 and cost of goods sold is P150,000, the gross profit rate based on cost is 25%. 2. If the gross profit rate based on sales is 40%, the gross profit rate based on cost is 50%. 3. If the gross profit rate based on cost is 33.33%, the gross profit rate based on sales is 25%.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Inventory Estimation 449 PROBLEMS ald PROBLEM 1: TRUE OR FALSE 1. If sales are P200,000 and cost of goods sold is P150,000, the gross profit rate based on cost is 25%. 2. If the gross profit rate based on sales is 40%, the gross profit rate based on cost is 50%. or ch tal nt 3. If the gross profit rate based on cost is 33.33%, the gross profit rate based on sales is 25%. 4. Beginning inventory is P10, net purchases are P140 and net sales are P120. If the gross profit rate based on cost is 20%, the ending inventory is P30. 5. During the year, an entity had net purchases of P100. If inventories had a net decrease of P20 during the year, the cost of goods sold is P120.
Transcribed Image Text:Inventory Estimation 449 PROBLEMS ald PROBLEM 1: TRUE OR FALSE 1. If sales are P200,000 and cost of goods sold is P150,000, the gross profit rate based on cost is 25%. 2. If the gross profit rate based on sales is 40%, the gross profit rate based on cost is 50%. or ch tal nt 3. If the gross profit rate based on cost is 33.33%, the gross profit rate based on sales is 25%. 4. Beginning inventory is P10, net purchases are P140 and net sales are P120. If the gross profit rate based on cost is 20%, the ending inventory is P30. 5. During the year, an entity had net purchases of P100. If inventories had a net decrease of P20 during the year, the cost of goods sold is P120.
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