Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 67APSA: Inventory Costing Methods Andersons Department Store has the following data for inventory,...
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Question
![Independent Assessment 3
Study the given data, then compute for what are asked?
Cost of Goods Sold and Merchandise Inventory. The following transactions are assumed to have taken place
during the month of July:
Purchases:
Amount
Description
units at Php 20.00
units at Php 20.00
units at Php 20.00
units at Php 20.00
units at Php 20.00
July
500
Php
10,000.00
10
800
20
1,000
25
600
Total
Php
Sales:
Amount
12,000.00
Description
units at Php 30.00
units at Php 30.00
units at Php 30.00
units at Php 30.00
units at Php 30.00
July
4
400
Php
12
700
1,100
500
24
31
Total
Php
Summary:
Total units purchased:
Less: Total units sold
Total units remaining unsold, 7/31
Unit cost
Total value of merchandise inventory, 7/31
From the above information, the cost of the units sold may be determined as follows:
Total units purchased during July
Less: total units remaining unsold, 7/31
Total units sold
Unit cost
Total cost of units sold
Php
The gross profit maybe computed as follows:
Sales (2,700 units at Php 30.00)
Less: Cost (2,700 units at Php 20.00)
Gross Profit on sales
Php
Php](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4617d4cf-db60-4cf7-9b94-6d3b2fa20f12%2F8ee2a2f9-dfd5-4a58-99b2-4cb1fc84e4b9%2Fdsm8tnf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Independent Assessment 3
Study the given data, then compute for what are asked?
Cost of Goods Sold and Merchandise Inventory. The following transactions are assumed to have taken place
during the month of July:
Purchases:
Amount
Description
units at Php 20.00
units at Php 20.00
units at Php 20.00
units at Php 20.00
units at Php 20.00
July
500
Php
10,000.00
10
800
20
1,000
25
600
Total
Php
Sales:
Amount
12,000.00
Description
units at Php 30.00
units at Php 30.00
units at Php 30.00
units at Php 30.00
units at Php 30.00
July
4
400
Php
12
700
1,100
500
24
31
Total
Php
Summary:
Total units purchased:
Less: Total units sold
Total units remaining unsold, 7/31
Unit cost
Total value of merchandise inventory, 7/31
From the above information, the cost of the units sold may be determined as follows:
Total units purchased during July
Less: total units remaining unsold, 7/31
Total units sold
Unit cost
Total cost of units sold
Php
The gross profit maybe computed as follows:
Sales (2,700 units at Php 30.00)
Less: Cost (2,700 units at Php 20.00)
Gross Profit on sales
Php
Php
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