Rizza Co. has an average age of inventory equal to 25 days. If its end of year inventory level is P8,50O, then what does that imply for the cost of goods sold during the year? (round to the nearest peso) * O P21,250 P124,100 P582 P4964

Rizza Co. has an average age of inventory equal to 25 days. If its end of year inventory level is P8,50O, then what does that imply for the cost of goods sold during the year? (round to the nearest peso) * O P21,250 P124,100 P582 P4964

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Description: Rizza Co. has an average ageof inventory equal to 25 days.If its end of year inventorylevel is P8,50O, then what doesthat imply for the cost ofgoods sold during the year?(round to the nearest peso) *O P21,250P124,100O P582P4964

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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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Rizza Co. has an average age
of inventory equal to 25 days.
If its end of year inventory
level is P8,50O, then what does
that imply for the cost of
goods sold during the year?
(round to the nearest peso) *
O P21,250
P124,100
O P582
P4964

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