Solution-What amount should be reported as cost of goods

What amount should be reported as cost of goods sold

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Reference no: EM133154003

Question - Karen Company reported the following information for the current year:

Beginning inventory 5,000,000

Purchases 26,000,000

Freight in 2,000,000

Purchase returns and allowances 3,500,000

Purchase discounts 1,500,000

Sales 40,000,000

Sales returns 3,000,000

Sales allowances 500,000

Sales discounts 1,000,000

A physical inventory taken at year-end resulted in an ending inventory of P4,000,000. At year-end, unsold goods out on consignment with selling price of P1,000,000 are in the hands of a consignee. The gross profit was 40% on sales.

Required -

1. What amount should be reported as cost of goods available for sale?

2. What amount should be reported as cost of goods sold?

3. What amount should be reported as estimated cost of inventory shortage?

Reference no: EM133154003

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What amount should be reported as cost of goods sold

Reference no: EM133154003

Reference no: EM133154003

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