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Rebel Company sells a new product. During a move to a new location, the inventory records for the product were misplaced. The bookkeeper has been able to gather some information from the purchases and sales records. The July purchases are as follows: Quantity 10,000 12,000 15,000 14,000 51,000 Unit Cost Total Cost July 5 9 65 650,000 756,000 900,000 868,000 3,174,000 63 12 60 62 25 On July 31, 15,000 units were on hand. The sales for July amount to P6,000,000, or 60,00 units at P100 per unit. Rebel has always used a periodic FIFO inventory costing system. Gross profit on sales for July was P2,400,000. What was the cost of inventory on July 1?

Rebel Company sells a new product. During a move to a new location, the inventory records for the product were misplaced. The bookkeeper has been able to gather some information from the purchases and sales records. The July purchases are as follows: Quantity 10,000 12,000 15,000 14,000 51,000 Unit Cost Total Cost July 5 9 65 650,000 756,000 900,000 868,000 3,174,000 63 12 60 62 25 On July 31, 15,000 units were on hand. The sales for July amount to P6,000,000, or 60,00 units at P100 per unit. Rebel has always used a periodic FIFO inventory costing system. Gross profit on sales for July was P2,400,000. What was the cost of inventory on July 1?

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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Rebel Company sells a new product. During a move to a new location, the inventory records for the product were misplaced. The bookkeeper has been able to gather some information from the purchases and sales records. The July purchases are as follows: Quantity 10,000 12,000 15,000 14,000 51,000 Unit Cost Total Cost July 5 65 650,000 756,000 900,000 868,000 3,174,000 63 12 60 25 62 On July 31, 15,000 units were on hand. The sales for July amount to P6,000,000, or 60,00 units at P100 per unit. Rebel has always used a periodic FIFO inventory costing system. Gross profit on sales for July was P2,400,000. What was the cost of inventory on July 1?
Transcribed Image Text:Rebel Company sells a new product. During a move to a new location, the inventory records for the product were misplaced. The bookkeeper has been able to gather some information from the purchases and sales records. The July purchases are as follows: Quantity 10,000 12,000 15,000 14,000 51,000 Unit Cost Total Cost July 5 65 650,000 756,000 900,000 868,000 3,174,000 63 12 60 25 62 On July 31, 15,000 units were on hand. The sales for July amount to P6,000,000, or 60,00 units at P100 per unit. Rebel has always used a periodic FIFO inventory costing system. Gross profit on sales for July was P2,400,000. What was the cost of inventory on July 1?
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