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Problem 1: Lamp starts a branch operation on January 1, 2013. Inventory costing P72,000 is shipped to this branch sells 70 percent of this inventory for P110,000 and remits P70,000 in cash to the home office. On Lamp's financial statements for this period, what is the appropriate cost of goods sold figure!
A. P50,400
B. P54,600
C. P70,000
D. P74.200
Required: Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method
From what we have been learning when it comes to accounting for inventory under the FIFO, LIFO, and the average costing method, I just need the average costing.
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