PART l.

Statement 1. The COGS is 75% of the Sales worth P. 50, 000.

Statement ll. The Gross Purchase is P. 35, 000 while its Net Purchase is P. 18, 000
Statement lll. The Purchase discount is P. 7, 000 while its Purchase return is P. 15, 000
Statement lV. The beginning and the ending is the same at P. 3, 000

Compute for the following: (SHOW YOUR SOLUTION)

1. Using the given in Statement l, what is the operating expense if the net profit is P. 800
2. COGS in Perpetual 5. Operating expense when net profit is P. 1, 000
(used the COGS in Perpetual)
3. COGS in Periodic 6. Net Profit or Net Loss when operating expense is
the value equivalent to the Freight in
4. Net Purchase (used the COGS in Periodic)

Opex when net profit is P. 800

1) Sales P. 50, 000
COGS 37, 500 (75% of the Sales)
Gross Profit 12, 500
Operating Expense 11, 700
Net Profit 800
COGS in Perpetual
2) Beginning Merch Inv P. 3, 000
Add: Gross Purchase P. 35, 000
= Goods available for sale P. 38, 000
Less: Ending Merch Inv P. 3, 000
=Cost of Goods Sold P. 35, 000
 COGS in Periodic
3) Beginning Merch Inv P. 3, 000
Add: Net Purchase 18, 000
= Goods available for sale P. 21, 000
Less: Ending Merch Inv P. 3, 000
= Cost of Goods Sold P. 18, 000

Gross Purchase
Add: Freight in
Less: Purchase discount
Purchase returns and allowances
= Net Purchase

4) Net Purchase= P. 18, 000

5) Sales P. 50, 000

COGS P. 35, 000
Gross Profit P. 15, 000
Operating Expense P. 14, 000
Net Profit P. 1, 000

6) Sales P. 50, 000

COGS P. 35, 000
Gross Profit P. 15, 000
Operating Expense P. 14, 000
Net Profit P. 1, 000