Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ZYX company had the following balances in its books for December 31, 2021: December 31, 2020 Inventory includes the following: 1. December 31, 2020 FOB

ZYX company had the following balances in its books for December 31, 2021:

December 31, 2020 Inventory includes the following:

1. December 31, 2020 FOB shipping purchases that arrived in January 10, 2021 - P100,000

2. December 29, 2020 FOB destination purchases that arrived January 3, 2021 P200,000

2,000,000

Purchases made for the year 2021

3,200,000

Purchase returns and allowances

(30,000)

December 31, 2021 inventory (including P425,000 goods in its warehouse consigned to it by ABC Co.)

2,500,000

How much should it report as Cost of Goods Sold (COGS)?

a. 2,995,000

b. 2,895,000

c. 3,095,000

d. 2,670,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

9th Edition

1265672008, 978-1265672003

More Books

Students also viewed these Accounting questions

Question

What are the important facts related to this situation?

Answered: 1 week ago