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What amount should be reported as cost of goods manufactured?

What amount should be reported as cost of goods manufactured?

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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Las Vegas Company accounted their finished goods inventory at the beginning of year 2020 amounting to P 5,500,000. The company's ending inventory is 65% of the beginning inventory. Alongside with this, they have also provided you the following events and transactions for the during 2020: • The entity obtained their sales amounting to P 7,000,000. Included in their sales is 200,000 worth of sales returns. Cost of goods sold is P 3,000,000. Income tax rate is 35%. • The company also shown that their Rent Cost is P 200,000; Office Supplies is P 150,000; and Utilities Fee of P 350,000. On the other hand, they also paid an amount of P 500,000 for sales commissions. • Interest revenue is P 250,000. Freight out and Uncollectible accounts expense amounted to P 150,000 each. • Due to a rush sale offered by the entity, they incurred a loss on sale of equipment amounting to P 100,000. They also added that they have incurred a loss on early retirement of long-term debt
Transcribed Image Text:Las Vegas Company accounted their finished goods inventory at the beginning of year 2020 amounting to P 5,500,000. The company's ending inventory is 65% of the beginning inventory. Alongside with this, they have also provided you the following events and transactions for the during 2020: • The entity obtained their sales amounting to P 7,000,000. Included in their sales is 200,000 worth of sales returns. Cost of goods sold is P 3,000,000. Income tax rate is 35%. • The company also shown that their Rent Cost is P 200,000; Office Supplies is P 150,000; and Utilities Fee of P 350,000. On the other hand, they also paid an amount of P 500,000 for sales commissions. • Interest revenue is P 250,000. Freight out and Uncollectible accounts expense amounted to P 150,000 each. • Due to a rush sale offered by the entity, they incurred a loss on sale of equipment amounting to P 100,000. They also added that they have incurred a loss on early retirement of long-term debt
3:22 Take Quiz • The entity obtained their sales amounting to P 7,000,000. Included in their sales is P 200,000 worth of sales returns. Cost of goods sold is P 3,000,000. Income tax rate is 35%. • • The company also shown that their Rent Cost is P 200,000; Office Supplies is P 150,000; and Utilities Fee of P 350,000. On the other hand, they also paid an amount of P 500,000 for sales commissions. • Interest revenue is P 250,000. Freight out and Uncollectible accounts expense amounted to P 150,000 each. • Due to a rush sale offered by the entity, they incurred a loss on sale of equipment amounting to P 100,000. • They also added that they have incurred a loss on early retirement of long-term debt of P 200,000. What amount should be reported as cost of goods manufactured? Exit
Transcribed Image Text:3:22 Take Quiz • The entity obtained their sales amounting to P 7,000,000. Included in their sales is P 200,000 worth of sales returns. Cost of goods sold is P 3,000,000. Income tax rate is 35%. • • The company also shown that their Rent Cost is P 200,000; Office Supplies is P 150,000; and Utilities Fee of P 350,000. On the other hand, they also paid an amount of P 500,000 for sales commissions. • Interest revenue is P 250,000. Freight out and Uncollectible accounts expense amounted to P 150,000 each. • Due to a rush sale offered by the entity, they incurred a loss on sale of equipment amounting to P 100,000. • They also added that they have incurred a loss on early retirement of long-term debt of P 200,000. What amount should be reported as cost of goods manufactured? Exit
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