The following information appears on the Kimchi Jjigae Company's records for the year ended December 31: Inventory, January 1- P325,000; Purchases- P1,150,000; Purchase returns- P40,000; Freight-in- P30,000; Sales- P1,700,000; Sales returns- P25,000. On December 31, a physical inventory revealed that the ending inventory was only P210,000. Kimchi Jjigae's gross profit on net sales has remained constant at 30% in recent years. Kimchi Jjigae suspects that some inventory may have been pilfered by one of the company's employees. At December 31, what is the estimated cost of inventory? * , O P210,000 O P292,500 O P82,500 D P75,000
The following information appears on the Kimchi Jjigae Company's records for the year ended December 31: Inventory, January 1- P325,000; Purchases- P1,150,000; Purchase returns- P40,000; Freight-in- P30,000; Sales- P1,700,000; Sales returns- P25,000. On December 31, a physical inventory revealed that the ending inventory was only P210,000. Kimchi Jjigae's gross profit on net sales has remained constant at 30% in recent years. Kimchi Jjigae suspects that some inventory may have been pilfered by one of the company's employees. At December 31, what is the estimated cost of inventory? * , O P210,000 O P292,500 O P82,500 D P75,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The following information appears on the Kimchi Jjigae Company's records for the year ended
December 31: Inventory, January 1- P325,000; Purchases- P1,150,000; Purchase returns-
P40,000; Freight-in- P30,000; Sales- P1,700,000; Sales returns- P25,000. On December 31, a
physical inventory revealed that the ending inventory was only P210,000. Kimchi Jjigae's gross
profit on net sales has remained constant at 30% in recent years. Kimchi Jjigae suspects that
some inventory may have been pilfered by one of the company's employees. At December 31,
what is the estimated cost of inventory? *
O P210,000
P292,500
P82,500
P75,000
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