What is the amount of loss that Purple Company recognize

Reference no: EM132823700

Question - Purple company had determined its December 31, 2019 inventory on a FIFO basis at P200,000. Information pertaining to that inventory follows:

Estimated selling price P204,000

Estimated costs of disposal 10,000

Normal Profit 30,000

Purple records losses that result from applying the lower of cost and net realizable value rule.

Required - What is the amount of loss that Purple Company should recognize at December 31, 2019?

Reference no: EM132823700

Questions Cloud

Should the utility cost be recorded : Should the utility cost be recorded? If so, when? Who is right and how should the accountant handle the situation? Which accounting principle influenced

What are some of the ethical issues that can arise : What are the issues and difficulties that can keep a company taking an advantage of those discounts. What are some of the ethical issues that can arise?

Describe one way that biometrics is currently being used : Describe one way that biometrics is currently being used in the private sector. Describe some of the best practices that should be in place to ensure.

Calculate the net present value for the proposed project : Suppose that the appropriate discount rate for this project is 6.7%, compounded annually. Calculate the net present value for this proposed project.

What is the amount of loss that Purple Company recognize : Purple company had determined its December 31, 2019 inventory on a FIFO basis at P200,000. What is the amount of loss that Purple Company recognize

What price will lake mcdonald gift shop charge : What price will Lake McDonald Gift Shop charge for each National Parks Memory Card Game? Lake McDonald Gift Shop has decided to price the games

What is the entry required to record the withdrawal : Profits after the withdrawal of Tim are to be shared equally. What is the entry required to record the withdrawal of Tim under the bonus method

Explain how currency meets the functions : In this threaded discussion, complete the following: Discuss the concept of money. Begin by defining the functions of money and explain how currency meets.

Relevance of employee grievance handling process : How educational institutions can improve employee satisfaction and morals of their employees, discuss your answer with relevance of employee grievance handling

User Account

All Pages