Question
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
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