Answered: 00,000. The perpetual inventory records…

Name: Razel Company used a perpetual inventory system. At the end of 2019, t
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Description: Razel Company used a perpetual inventory system. At the end of 2019, the balance in the inventory account was P720, 000 and P60,000 of those goods included in ending inventory were purchased FOB shipping point and did not arrive until 2020. Purchases

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 13PA: Company Elmira reported the following cost of goods sold but later realized that an error had been...

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Razel Company used a perpetual inventory system. At the end of 2019, the balance in the inventory account was P720, 000 and P60,000 of those goods included in ending inventory were purchased FOB shipping point and did not arrive until 2020. Purchases in 2020 were P6, 000,000. The perpetual inventory records showed an ending inventory of P840, 000 for 2020. A physical count of the goods on hand at the end of 2020 showed an inventory of P760, 000. Inventory shortages are included in cost of goods sold. What amount should be reported for cost of goods sold in 2020?

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