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### Breakdown of data from the table:

**Products:**
1. **Tsinelas**
   - Unit Cost: ₱65.00
   - Beginning Inventory (Quantity/Amount): 1,000 / ₱65,000
   - Purchases: ₱20,000
   - Purchase Returns: ₱600
   - Total Goods Available for Sale (TGAS): ₱20,400
   - Sold: ₱19,000
   - Sales Returns: N/A
   - Ending Inventory (Quantity/Amount): 1,400 / ₱91,000

2. **Bakya**
   - Unit Cost: ₱40.00
   - Beginning Inventory (Quantity/Amount): 550 / ₱22,000
   - Purchases: ₱12,000
   - Purchase Returns: ₱12,550
   - Sold: ₱9,500
   - Sales Returns: 5 units
   - Ending Inventory (Quantity/Amount): 3,055 / ₱122,200

3. **Wedge**
   - Unit Cost: ₱87.00
   - Beginning Inventory (Quantity/Amount): 930 / ₱80,910
   - Purchases: ₱14,000
   - Purchase Returns: ₱14,930
   - Sold: ₱13,500
   - Ending Inventory (Quantity/Amount): 1,430 / ₱124,410

**Total beginning inventory amount: ₱167,910**

---

### Solutions to the Exercises:

1. **Journal entry for beginning inventory:**
   - Debit **Inventory**: ₱167,910
   - Credit **Retained Earnings/Equity**: ₱167,910

2. **Net cost of purchases for the three products:**

\[
\text{Net Purchases} = \text{Purchases} - \text{Purchase Returns}
\]
For each product:
- **Tsinelas:** ₱20,000 - ₱600 = ₱19,400
- **Bakya:** ₱12,000 - ₱12,550 = -₱550 (indicating returns exceed purchases)
- **Wedge:** ₱14,000 - ₱14,930 = -₱930 (indicating returns exceed purchases)

\[
\text{Total Net Purchases} = ₱19,400 - ₱550 - ₱930 = ₱17,920
\]

3. **Total Goods Available for Sale in terms of peso:**

\[
\text{TGAS (in peso)} = \text{Beginning Inventory Amount} + \text{Net Purchases}
\]
\[
TGAS = ₱167,910 + ₱17,920 = ₱185,830
\]

4. **Cost of Goods Sold:**

Using the periodic inventory system:
\[
\text{COGS} = \text{Total Goods Available for Sale} - \text{Ending Inventory}
\]
\[
COGS = ₱185,830 - ₱337,610 = ₱-151,780
\]
This negative number indicates an error or return mismatch. We need to investigate sales returns or apply adjustments for better insight.

5. **Journal entry to set up the cost of ending inventory:**
   - Debit **Ending Inventory**: ₱337,610
   - Credit **Inventory** (COGS or Retained Earnings): ₱337,610

6. **Income Statement from Sales to Gross Profit:**

Assume a 60% markup. Let’s calculate the selling price based on markup:
\[
\text{Selling Price} = \text{COGS} \times (1 + \text{Markup})
\]
But we cannot compute directly due to COGS mismatch.

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Would you like more details on any specific calculation? Here are related questions:

1. How can inventory errors affect financial reporting?
2. What adjustments should be made for sales returns?
3. What happens when purchases are lower than returns?
4. How do we ensure correct ending inventory values?
5. How to apply a markup correctly for an accurate gross profit?

**Tip:** Always review data consistency in inventory records before computations to avoid errors in reporting.

This page guides you through solving inventory cost problems, including journal entries, cost of goods sold, and gross profit calculations using a periodic inventory system. The problem involves three products with purchase, return, and sales data, and concludes with markup pricing calculations. Suitable for students studying accounting or business at the high school level.

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