In preparing its interim financial reports for the quarter ending March 31, 2023, TRIGO Company decided...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In preparing its interim financial reports for the quarter ending March 31, 2023, TRIGO Company decided to use the gross profit method in estimating its ending inventory. Information that may be relevant for this purpose is provided as follows: Beginning inventory Gross purchases Gross sales Purchase returns Sales returns Freight in Year 2022 P2,300,000 7,530,000 10,350,000 260,000 350,000 400,000 January 1 to March 31, 2023 P2,470,000 1,800,000 2,500,000 60,000 100,000 90,000 Required: Under each of the following independent scenarios, determine the estimated inventory as of March 31, 2023: 1. The Company maintained during the first quarter of 2023 the 2022 gross profit rate based on sales. 2. The Company maintained during the first quarter of 2023 the 2022 gross profit rate based on sales plus additional 3%. In preparing its interim financial reports for the quarter ending March 31, 2023, TRIGO Company decided to use the gross profit method in estimating its ending inventory. Information that may be relevant for this purpose is provided as follows: Beginning inventory Gross purchases Gross sales Purchase returns Sales returns Freight in Year 2022 P2,300,000 7,530,000 10,350,000 260,000 350,000 400,000 January 1 to March 31, 2023 P2,470,000 1,800,000 2,500,000 60,000 100,000 90,000 Required: Under each of the following independent scenarios, determine the estimated inventory as of March 31, 2023: 1. The Company maintained during the first quarter of 2023 the 2022 gross profit rate based on sales. 2. The Company maintained during the first quarter of 2023 the 2022 gross profit rate based on sales plus additional 3%.
Expert Answer:
Answer rating: 100% (QA)
To estimate the ending inventory using the gross profit method we need to calculate the cost of good... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
Students also viewed these accounting questions
-
Dudley Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dudley Manufacturing's operations: Current Assets as of December 31...
-
Damon Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Damon Manufacturing's operations: Current Assets as of December 31 (prior...
-
Cicek Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Cicek Manufacturings operations: Current Assets as of December 31 (prior...
-
A Monica who is aged 54, is employed as a Senior Manager with Abacus, a large accounting firm based in Sydney. During the 2020 tax year Abacus contributed $20,000 into QRest Super, which Monica...
-
How do the provisions of IAS 2 differ from the lower-of-cost-or-market rule contained in U.S. GAAP?
-
How is the order of a differential equation determined?
-
The Korvette concept was started and run by one person and his group of friends. How could its failure have been avoided? Was the problem one of strategy (overexpansion), or was it organizational?...
-
The Tall Oaks Wood Products Company is considering purchasing timberland for $5 million that would provide a future source of timber supply for the companys operations over the next 10 years....
-
Executives at Southwestern Construction have noticed that the company's construction team in the Phoenix office is more efficient with its resources than the other teams in the Las Vegas, Salt Lake,...
-
Express Co. purchased equipment on March 1, 2015, for $95,000 on account. The equipment had an estimated useful life of five years, with a residual value of $5,000. The equipment is disposed of on...
-
The law of octaves was proposed by OG. N. Lewis. O John Newlands. O Dmitri Mendeleev. O J. J. Thompson. O Ernest Rutherford.
-
You will submit this assignment using the Text Submission box that appears when you click on the Write Submission button in the assignment submission section. To avoid timing out the system, it is...
-
It takes 5 minutes, 8 seconds to play a song at 120 beats per minute. How long does it take to play the same song at 140 beats per minute? (Round your answer to the nearest second.) 4 minutes 24...
-
Due to the COVID pandemic, there is urgent need for a medical product that only two firms have the capabilities to produce. It is understood that this is a "one shot game" in that once the initial...
-
It takes 2 cups of water to cook 1 cup of rice. CLEARCHECK How much rice can you cook with 0.5 cups of water?
-
CASE Pansy Jewelry Limited ("PJL") is a company listed on the Main Board in Hong Kong and is principally engaged in the manufacture and distribution of jewelry. PJL and its subsidiaries (the "Group")...
-
2. John is 28 years old right now. He needs $750,000 at the age of 66 to retire. If his savings account can generate an average annual rate of return of 9%, how much money does he need to put in...
-
Place a tick in the appropriate grid to identify the balance that would be brought down in each of the following named accounts, in the books of Rizwy Mohamed: (a) In the Cash account: if Rizwy...
-
The following are selected transactions of the specific-purpose fund, the plant fund, and the endowment fund of Toddville Hospital, a not-for-profit entity: 1. Received in the endowment fund new...
-
The following financial statement information was prepared for Blue Corporation and Sparse Company at December 31, 20X2: Blue and Sparse agreed to combine as of January 1, 20X3. To effect the merger,...
-
Bunker Corporation owns 80 percent of Harrison Companys stock. At the end of 20X8, Bunker and Harrison reported the following partial operating results and inventory balances: Bunker regularly prices...
-
Rewrite the Gross-Pitaevskii equation and the mean field energy, see equations (11.2.21) and (11.2.23), for an isotropic harmonic oscillator trap with frequency \(\omega_{0}\) in a dimensionless form...
-
The energy levels of an imperfect Fermi gas in the presence of an external magnetic field \(\boldsymbol{H}\), to the first order in \(a\), may be written as...
-
Solve the Gross-Pitaevskii equation (11.2.23) in a harmonic trap for the case when the scattering length \(a\) is zero. Show that this reproduces the properties of the ground state of the...
Study smarter with the SolutionInn App