What is the estimated cost of the missing inventory on December 31,2021? a. P151,000 b. P165,000 c. P420,000 d. P585,000
What is the estimated cost of the missing inventory on December 31,2021? a. P151,000 b. P165,000 c. P420,000 d. P585,000
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 38BE: Inventory Analysis Callahan Company reported the following information for the current year....
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Question
What is the estimated cost of the missing inventory on December 31,2021?
a. P151,000
b. P165,000
c. P420,000
d. P585,000
![Inventory Estimation - Gross Profit Rate Method
The following information appears in Jasper Company's records for the year ended December 31:
Inventory, January 1
9 650,000
Purchases
2,300,000
Purchase returns
80,000
Freight-in
60,000
Sales
3,400,000
Sales discounts
20,000
Sales returns
30,000
On December 31, a physical count revealed that the ending inventory was only P420,000. Jasper's gross profit on net
sales has remained constant at 30 percent in recent years. Jasper suspects that some inventory may have been
pilfered by one of the company's employees. On December 31, what is the estimated cost of missing inventory?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2822a2dc-26d6-4a36-908f-b832d5119432%2F748442ad-18d6-42ee-bed6-00514b016792%2Fkw2u2nf_processed.png&w=3840&q=75)
Transcribed Image Text:Inventory Estimation - Gross Profit Rate Method
The following information appears in Jasper Company's records for the year ended December 31:
Inventory, January 1
9 650,000
Purchases
2,300,000
Purchase returns
80,000
Freight-in
60,000
Sales
3,400,000
Sales discounts
20,000
Sales returns
30,000
On December 31, a physical count revealed that the ending inventory was only P420,000. Jasper's gross profit on net
sales has remained constant at 30 percent in recent years. Jasper suspects that some inventory may have been
pilfered by one of the company's employees. On December 31, what is the estimated cost of missing inventory?
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