Reference no: EM132566168

An inventory taken the morning after a large theft discloses P60, 000 of goods on hand as of March 12. The following additional data is available from the books:

Inventory on hand, March 1                                 P84,000

Purchases received, March 1 - 11                         P63,000

Sales (goods delivered to customers)                    P120,000

Estimate the inventory of goods on hand at the close of business on March 11 by the gross profit method and determine the amount of the theft loss. Show appropriate titles for all amounts in your presentation.

Questions:

Question 1. Past records indicate that sales are made at 50% above cost.

Question 2. Past records indicate that sales are made at 25% above sales.