The following selected accounts were taken from the books of Santos Trading on December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise inventory , Jan 1, 2016-P27,520

Accounting Sep 12, 2020

The following selected accounts were taken from the books of Santos Trading on December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise inventory , Jan 1, 2016-P27,520.

Cost of goods sold is

Select one:

a. P 42,755

b. P62,250

c. P75,985

d. P 59,750

Expert Solution

Computation of the cost of goods sold:-

Cost of goods sold = Net sales - Gross profit

= 120000 - 60750

= 59250

None of option is correct.

The cost of goods sold = P59,250

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