pROBLEN problem 16-1 (IAA) amiable Company provided the following data at year-end: ms counted in the bodega » 4,000,000 Gigs included in the count specifically segregated aHet er sales contract 100,000 Atoms in receiving department, returned by customer, in good condition , 50,000 Atems ordered and in the receiving department, invoice not received » *400,000 Hems ordered, invoice received but goods not received. Freight is paid by seller. 300,000 Srems shipped today, invoice mailed, FOB shipping point 250,000 ems shipped today, invoice mailed, FOB destination # 150,000 Jems currently being used for window display (77 200,000 Arems on counter for sale - 800,000 stems in receiving department, refused by us because of damage .2380,000 — Items included in count, damaged and unsalable a 50,000 fiems in the shipping department 2 , 250,000 Required: Compute the correct amount of inventory. 497rv, |? ation a - og informe Problem 16-2 GAS) the followins inft Riek on: Natal Company provided 400.00 2 650,000 60,004 150,0¢ Js ordered 2,000,001 Materials 5 Advance for materia Goodsin process | Unexpired insurance BE Advertising catalogs and shipP Finished goods in factory seeaiete! Fin hed goods ompany-ownes Pinishe is ; "iacluding 50% profit on cost ets including Finished goods in hands of cons!8¥ ae 40% profit on sale: sexs, shippe Poco Finished goods in transit to custom 2 0,000 destination at cost ie 00 Finished goods out on approval, at co 5 000 Jable finished goods, at cos' Oo t shipped FOB shipping point cost P150,000 rea 750,000 400,000 000 200,00( Unsa Office suppli Materials in tr: excluding freight of P30,000 ee Goods held on consignment, at sai Required: / Compute the correct amount of im ventory. Problem 16-3 (IAA) } Luminous Company provided the following information at current year-end: Finished goods in storeroom, at cost including overhead. 2,000,000 of P400,000 f Finished goods in transit, including freight charge of 250,000 P20,000, FOB shipping point Finished goods held by salesmen, at selling price, 140,000 720,000 cost, P100,000 Goods in process, at cost of materials and direct labor 1,000,000 Materials Materials in transit, FOB destination 50,000 is returned to suppliers for replacement 100,000 20,000 Defective material: 110,000 Shipping supplies Gasoline and oil for testing finished goods 60,000 Machine lubricants Required: Compute cost of inventory at current year-end. 498problem 16-4 (IAA) gummer Company is a y pinning of the current ye ‘ sar acatc ge 0cer ee priced reat die, the following events occurred 1, Purchased 800’car seatcovers on P 1,000 eact gy Returns 50. defective car ee Seca ath | received credit . Paid 600 of the car seatcovers purchos ; tcovers at P2,000 each Sold 790-car sez Received 20 bar seatcovers returned by a ct credit. The goods were in excellent condi Received cash for 680 of the car seatcove’ Physical count at year-end revealed 60 units on hand oe ag required: cord including adjustments to r riodic suming the company uses pe lem. Prepare journal entries the above transactions system and perpetual p. Determine the cost of sales under each inventory system -problem 16-5 (ACP) - v tations from two entities for am r Company received quo f merchandise as follows: List price P500,000, less 20-10-10, FOB shipping point, 2 /10, n /30. From Company B: List price P500,000 less 35, FOB point, 2 /10, n /30. Winte item © From Company A: shipping Required: te the invoice amount and the amoun For each quotation, compu : ayer within the discount period. to be paid by the bi 499actions for +6 (LAA) vided thé fi Problem 16 Jowine utumn Company PFOV"™ of ope Bea 75 Aecaenn ee tg Aree price of E erehandise at ¢ a togated tc 1. Pure en a exclu roo. The frei ch P1,617,( 2. Freig 54,717,000,.0f which puret chases, P3,7 poriod. ash payment on pur Cash paym ea scowl was paid within the th ated 4. It is expected that all disc will be lost. 5 5. On December 31, on hand. id accounts f fnfn of the merchandise remains i Required; d the transactions usi ries to recor entries Prepare journal a. Prepare journ ead. gross method and net sales under each method b. Compute inventory and cost of sales ur Problem 16-7 (TAA) Fall Company began operations in the current year. The entity used perpetual inventory system. L During the year, Fall Company purchased merchandis, having: gross invoice cost of P1,000,000. All purchases were made under the terms 2/10, n/30, FOB destination. Fall Company paid freight charge of P50,000. 3. During the year, Fall Company paid for 80% of th merchandise within the discount period. 2 The remaining 20% was paid beyond the disi 5. Fall Company sold 70% of the merchandise j cash of. P1,200,000. The other 30% re year-end. 2 e count period. M t acquired for mained in inventory at ‘equired: pare journal entries to : recor i i oe ee rd the transactions USINg gross 500Required: Pr. are the sell openlun Jom 16-10 (AICPA Adapted) n Decer t of goods jjustment aber 31s goi7 av 1 at costs priced relating the prov oro Compnny reportec 9,000,000 bane don a ph; Hil before any neces mney followin’ [ncluded customer ods had A cost Ricrier on January 10, | inventory 0 yeical coun enr-end ad 4 to a These py the js billed 31, 2037+ cked UP nt were B00 in the physical cou nn December FOB shipping point o P126,000 and were PX 3, « Goods shipped FOB shipping point on December 28, 20M" from a vendor to Hero Company were © ived on. January A, 2018. ‘The invoice cost was P300,000. nventory 0m D ’ ecember What amount should be reported as gi, 2017? 5,875,000 - 6,000,000 g._ 6:175,000 ' 3,300,000 ) d. 6, jw l0 A Problem 16-11 (AICPA Adapted) ay reported inventory on December 31, 2017 at iced at cost and before fimpty Compat p2,500,000 based on physi 41 count pric any 1 ary adjustment for the following: * Merchandise costing P100,000, shipped. FOB shipping point from a vendor on December 30, 2017 was received and recorded on January 5, 2018. * Goods in the shipping area were excluded from. inventory although. shipment was not made until January 5, 2018. The tomer FOB shipping point on goods bi to the cus’ December 30, 92017 had a cost of 400,000. nt should be reported as inventory on December What amou! 31, 2017? a. 2,500,000 b. 2,600,000 ¢. 2,900,000 d. 3,000,000 503consignm ted) 5 ap folowi? g ee eat’ 3PA 6-17 Ale - 5 ee Problem yas! FE — ; y ig 50, Pigjactions By : Sigal oe : ado istghe ps ‘thy ity Corennen di ring the current y ir Freight paid oon a om Peght ra ee ds were ae consigned inve ut Freight p4 s mas No gales of consign’ ; ie report al i t shou What amoun year-end? 1,500,000 b. 650,000 c, 850,000 600,000 ie) nsigned 50 freezers d paid P20,000 jn d. Ada Problem 16-18 (AI oe Company con 9 , Hum1 eac é peo On October 1, 2017, Hume P10,000 e836 S517, the consignee to a consignee for sale ay be emitted P340,000. Tihs reported the a foot 40 ee ae are commission. Se net of the agree: ignment sale ance s Sales ee t should be recognized as consig: What amount s revenue for 2017? a. 400,000 b. 340,000 e. 500,000 d. 425,000 Problem 16-19 (AICPA Adapted) On December 1, 2017, Gratitude Company received 1,000 Sweaters on consignment from a consignor, The cost for the Sweaters was P800 each, and the Sweaters were priced to sell at P1,000 each, The commission on consigned goods is 10%. On December 31, 2017, 100 sweaters remained. On December 31, 2017, what amount should be reported as ed goods? Jayable for consign 1,000,000 810,000 720,000 900,000 506plem 16-20 (AICPA Adapted) APP SIF 68. as DIK 20K GA pre’ what * the inventoriable cost of the purchase” 422,009 2 4.020,000 fo 4,080,000 , 4,130,000 .\Z a problem 16-21 (AICPA Adapted) Kindness Company regulars 8 swe and is allowed a trade discount of 20% and 10° made a purchase on March 20 and r ed an invor ith a list pric of ge of P50,000. and payment terme of 000, 2 freight char net 30 days. The entity should record the purchase at what amount? 648,000 , 630,000 ¢. 698,000 d. 630,000 problem 16-22 (AICPA Adapted) '» “}s Compassion Company sold merchandise The entity On June 1, 2017 ice of P1,000,000 to a customer. % and 10%. Credit terms were with a list pri allowed trade discounts of 20' 5/10, 0/30 and the sale was made FOB shipping point. The entity prepaid P50,000 of delivery cost for the customer 2: an accommodation. The customer paid in full on June 11, 2017 mer as full remittance What amount is received from the custo a. 684,000 b. 734,000 c. 720,000 d. 770,000 507; dapte) Problem 16-27 (AICPA A cen Peer a1 q tea accounts PAY"). following datz ior ory reported onsicerine n° following data 2017 at P2,200, . i ing point o Tun, “ER eae 22 § were los a 7 ded by Kew: t recor a p40,000 claim against December 22, of P40,000 was not On January 7, 2018, Kew filed the common carrier. 27, 2017, @ vendor o ds shipped and pill authorized Kew to return led at P70,000 on On December for full credit goo December 15, 2017. ped by Kew on December re ship : emo was received and The returned goods we 28, 2017. A P70,000 credit m 5, 2018. recorded by Kew on January has a P500,000 debit balance a supplier, resulting from a On December 31, 2017, Kew goods to be manufactured. in accounts payable to Ross, P500,000 advance payment for What amount should be reported as accounts payable on December 31, 2017? a. 2,170,000 b. 2,680,000 c. 2,730,000 d. 2,670,000 510problem 16-28 (AICPA Adapted) Jecember 31 stments plack Company reported accou B17 at P4,500,000 before any nec to the following transactions: ary rolatit™ e and recorded vera « On December 27, 2017, Black Company wrot checks to creditors totaling P2,000,000 causing an © of P500,000 in Black Company's bank account 0D De 41, 2017. The checks were mailed out on January 10, aber 2018. On December 28, 2017, Black Company purchased and . received goods for P750,000 terms 2/10, n 130 Black Company records purchases and accounts payable at net amount. The invoice was recorded and paid January 5, 2018 * Goods shipped FOB destination, 5/10, n/30 on De 2017 from a vendor to Black Company were ¥¢ 20, January 15, 2018. The invoice cost was P325,000. On December 31, 2017, what amount should be reported as accounts payable? a. 7,575,000 b. 7,250,000 ¢, 7,235,000 d. 7,553,500 511problem 16 LAA) jeal count on December 31, 2017 revealed that Joyous pad inventory with a cost of Pay 110,000) his amount phe following items were excluded from t sld by Joyous 0° consignment py Joyous P380,000 was shipped © December 31, 2027- «Merchandise of P610,000 is he * Merchandise costing FOB destination to & customer on Phe customer was expected to recelve the goods on O18. as shipped by Joyous on December 29, 2017 January costing P4G0,000 w Merchandise a customer * FOB shipping point to The customer was expected to receive the goods on January 10, 2018. « Merchandise costing P830,000 shipped by a vendor FOB her 31, 2017 was received by Joyous destination on Decem! on January 15, 2018. OB shipping 510,000 purchased F x on December 31, 2017 * Merchandise costing P: 2018. point was shipped by the supplie! and received by Joyous on January 5, be reported on December What amount of inventory should 31, 2017? a. 5,300,000 ‘ b. 4,690,000 - e. 3,800,000 ; a. 4,920,000 513berg 0 Proplen 16-82 (tay nding inventor yd the © : mpany ool ated ported inventory beforc ent! hen the to} 9017. The 2,000,000. ig items were inventory W8° Audacity Co’ December 31, corrections at None of the followin. im cluded W. computed amount of the ending din the entity's warehouse from another entity * Goods locate: are on consignment * Goods sold by the entity and shipped - ee ‘ destination were in transit oD December #1, 2017 and received by the customer on 200,000 and shipped January 2, 2018 Goods purchased by the entity FOB shipping point were in transit on December 31, 2017 and received by the entity on January 2, 2018 300,000 Goods sold by the entity and shipped * nee shipping point were in transit on lecember 31, 2017 and received by the 400,000 customer on January 2, 2018. should be reported on Decembe 2Y What a F abo a. 2,500,000 b. 2,350,000 ¢. 2,900,000 d. 2,750,000 514December, Peppiem 16-98 (AICPA. Adapted) ,d Company conducted a physical ana ‘al cost of g $017 which revealed merchandise count Gata) cost © 5,000,000- poweve!> further investigation revealed that the followins jrems were excluded from the count « Goods sold to a customer which are being held for a ll at the customer's convenience er cngs ce customer to ¢ of pz00,000. case containing a product co’ n the shipping room whe A packing sting P500,000 was standing 1 n the physica inventory was taken The product was not included in the inventory beca was marked “hold for shipping instructions”. ation revealed that the customer’: but that the case W dated December 28, 2017, and the customer billed on January 5, 2018. achine costing P250,000 fabricated to order was finished and specifically part of the shipping room on use it The investig: s order was as shipped * A special m for a customer segregated at the back December 31, 2017. The customer was billed on that date and the machine ough it was shipped was excluded from inventory alth on January 5, 2018. * Goods in process costing P300,000 held by an outside processor for further processing. * Goods costing P50,000 shipped by a vendor FOB seller on December 31, 2017 and received by the entity on January 10, 2018. rrect amount of inventory that should be What is the co reported on December 31, 2017? a. 5,500,000 b. 5,550,000 c. 5,850,000 d. 5,800,000 515em 16-35 (IAA) nancial Pegi Company *= preparing the + ar-end uted at ° ents. Prior to any adjustments, probl cry is value vendor on tateme 7,600 Goods costing P250,000 were received from 4 Mees and * january 5, 2018. The related invoice WAS received 2m fecorded on January 12, 2018. he goods were shipped on December 31, 2017 FOB shipping point. 10 were shipped on. December 31, 2017 were included « Goods costing P850,001 to a customer FOB shipping point. The goods nding inventory for 2017 even though t he sale Was ine recorded in 2017 + A P350,000 shipmé 31, 2017 FOB destination wa: inventory. ds cost P260,000 and were delivered to the customer 5, 2018. The sale was properly recorded in 2018. * An invoice for goods costing P350,000 was received and recorded as a purchase on. December 31, 2017. The related goods shipped FAS were 1p transit on December 31, 2017 and received on January 5, 2018 and were not included in the physical inventory- ds to a customer on December corded as a sale in 2017. mer on December ent of goods to a custo! in the year-end s not included The goo ondanuary 1 A P1,050,000 shipment of goo 30, 2017 FOB destination was ret The goods costing P840,000 and delivered to the customer t included in 2017 ending on January 5, 2018 were no inventory. What is the correct inventory on December 31, 2017? a. 9,300,000 b. 7,610,000 c. 8,100,000 d, 8,450,000 51716-87 (ACPA Adapted) re net 60 day? 7OP shippine 900,000 for probler Company® ual anles terms 1 Fee oie enot of roturne and allowances, tot led F A ope Batided December 31, 2017, before year end adjustment pe stomer On Decembe 2017, White Company authorized ¢ Cee * aroun | s shipped d billed at re ite Hi fomber 10, 2017, Tho returoed gor ro received by White Company on danusry f 2018, and a 250,000 credit mem Caued on the sare date nount of P300,000 were pilled to 4 The goods wore shipped OP Goods with an invor January 10, 2018. mer on 4 pyaton focombor 31, 2017. + Goods with an invoice amount recorded oP December 30, 2017. on January 5, 2018. *« On January that goods billed at 2017 were lost in transit. What amount of net gales should be reported year? . a. 6,060,000 5,550,000 4,550,000 ¢. d, 4,450,000 Problem 16- Purple Comp; of the current year. equaling 7' additional 3% will be merc) In addit exchanged for merchandise of equa What amount should be reported for net sales for the month of December? a. 3,600,000 b. 3,400,000 c, 8,120,000 d, 3,000,000 20148, a customer notified *500,000 and shippec \¥ 8 (AICPA Adapted) any had sales of f has shown that merc’ d within 30 days and an Experience days. Returned % of sales will be returnes returned within 90 Ned and of P200,000 were bi The goods were shipped 1 White 4-2) »4,000,000 during De handise is readily resalable ion, merchandise equaling 15% of sales will be 1 or greater value. 519 ompany Jon December 31, 1 for the current|p 0) bought pa Adapl™ p machinery, 1, November 2017 any, a a the ? Problev this machine discount if pay Yellow Comp inachine from P500,000. , BO, 2017, 33 following 1 tiscount if pa full w sftor thirty di ig thin ninety On December Or 0,000, under PTO Oi ety days. 1 oe in within te dye, OF Payee ods seeiishin the aiseount POt » customer had the right to return thie maching : er had the Maple to resell the machinc ny payment period, in whic} any would be However, the fo Yellow Company if it before expiration of the ninety-day | : afore erp stomer’s obligation 1° Yellow, Compe anceled. December 31, 2017, what gale of the machine? net sales for the be includ In the year ended amount should led for the 750,000 735,000 ce. 742,500 d. 0 Problem 16-40 (AICPA Adapted) w On October 1, 2017, Indomi 3 |, 2017, table Company si walone et Reta at P30 per gallon. Fifty eee i pe eo ads elivered on December 15, 2017, and the Cc gallons ; ,000 gallons were delivered on January 15, 201 Sa ayment terms were: 50% ; sae rms e: 50% due on Octo! é eral dalivargeatad'is rematittg vee 2017, 25% on on the second a. b v \ delivery. What am Dee ount of sales revenue should be recognized ized duri 2. 3,000,000 eine 2. 1,500,000 c. 2,250,000 750,000 520Fane replace sen P et adaitional information ae B,, Beanery F200 A Pear an cea, aber 81 2017 0 oe ‘he Bion Deo per 31 na p. p20,000 of parts whi as ae beak R01 oe el weed aa gales of p28, 000. Lcount on Decembey December 4 ly recor’ appropriate ading dock waitin, included in the physica the parts were on the los e customers 31, 2017 to customers 2017, amounted t, ‘The parts were 31, 2017, because to be picked up by thi December C. Parts in transit on L FOB shipping point, on Dece: P34,000. shipped mber 28, parts on January 6, 2018. Sal Sales The customers received the for the parts were recorded ly y of P40,000 to the customers Fancy Company on January 2, 2018. D. Retailers were holding P2 ailers g P210, cK 2 retail, of goods on ea te ua ae at their stores on December 31, 2017. ee rpeny. a E. Goods were i i E in transit fr Dene ‘om a vendor to Fancy C o : x 31, 2017. The cost of goods was P26 a Ee Ie goods we; i a 29,2017,” “hipped FOB shipping poi ig point on December 5224. 1,800,000 bh. 1,820,000 ¢ 1,834,000 1,090,000 t amount of accounts payabl What is the corre a. 835,000 b. 960,000 ¢. 975,000 d. 860,000 What is the correct amount of sales? a. 9,250,000 b. ),000 ¢. 9,040,000fo 75 ted) A 4g (AICPA Adar! ¢ problem 16-43 (ar earl tools, provide d the : ? manuincturer of MON aber 31, 2017 Quarry Compan Sy for the Your On° , eae pysical count 1,750,009 Specanber 81 b90ed on P yaic’ Bae a00 re Fale ‘at December 31 See ‘ccounts Pa Net sales E Additional information . » tools billed to a custome, i nysical count were to0%s 1, ‘A. Included in the PRY comber 31, 2017. These tools had . FOr pas 000 billed at P39,000. coat of P28,000 and were billes nt was in loading dock waiting to be picked up by ; ‘The shipment wai the common carrier. in transit from a vendor to Quarry Company B. Goods were on December 31, 2017. The invoice cost was P50,000, and the goods were shipped FOB shipping point on December 29, 2017. C. Work in process inventory costing P20,000 was sent to an outside processor for plating on December 30, 2017. Tools returned by customers and held pending inspection in the returned goods area on December 31, 2017 were not included in the physical count. On January 5, 2018, the tools costing P26,000 were inspected and returned to inventory. Credit memos totaling P40,000 were issued to the customers on the same date. E. Tools shipped to a customer FOB destination on Jecember 5 ‘ , 2017, were in transit on December 2017, 26, 2 31 17, and had a Upon notification of receipt by the custom January 5 e er on 2018, Quarry Company issued a sales invoice for P42,000 524F- - included in the ost of P30,000, rect ived from | 17, were Fecores th an invoice 5:00 P.M. on December Goods, wi yendor at vorg receiving report dated January nt but ods were not included in the Ph: val coun! phys, on December The © the inve ‘cluded in accounts Pay 31, 2017- ice was in ived from a vendor on December 26, 2017 were physical count. ndor invoice was not December 31, 2017 receiving report Goods rece lated P60,000 ve ts payable on However, the re ayable copy of the uded in accoun incl pecause the accounts p: was lost. reight pill in the amount Jated to On January 10, 2018, a monthly f of P20,000 was received. The bill specifically re merchandise purchased in December 2017, one whieh was still in the inventory 0D December 31, t charge was not include payable on December 31, -half of 2017 d in either the 2017. The freigh inventory or in accounts correct amount of inventory? What is the a. 1,883,000 p. 1,911,000 c. 1,885,000 c. 1,925,000 What is the correct amount of accounts payable? a. 1,830,000 pb. 1,280,000 ¢. 1,250,000 d. 1,270,000 What is the correct amount of net sales? a. 8,460,000 b. 8,500,000 c. 8,465,000 d. 8,425,000 5259 (AICPA Adapte em 17- ted Composition of the Dec aversée otal cost Units unit cost Tota 2014 o ¢ 2015 5, 000 2.00 20 2017 Mar. 1! 4,800 units ’ for P643,00 7,200 units Sept. 1 7,20 2 for P1,008,000. At production in 2017 were p 2018 Jan. 10 7,500 units were purchase for P1,087,500. May 10 00 units were purchased at a u for P852,500. a unit c its were t Dec. 29 7,000 units were purchased at for P1,120,000. A total 16,000 un: production during 2018. Required: 1. Inventory - December 31, 2017 2, Raw materials used for production during 2017 3. Inventory - December 31, 2018 4. Raw materials used for production during 2018Jem 17-12 (IAA) prob! Jompany beg: >| > on dant arlot ComP began operations . Hares the weighted average method of invent adopt 2017 18 bales (000,000 4,000,000 Gost of sales 1,500,000 _2,000,000 income 1,500,000 2,000,000 ses 800,000 900,000 Net income 700,000 _1,100,000 amount Weighted average 270,000 300,000 380,000 Required: Revise the condensed comparative income assuming the entity used the FIFO method. Problem 17-13 (IAA) 2017 and ricing 2019 4,800,000 2,400,000 2 400,000 1,000,000 1,400,000 FIFO 420,000 500,000 650,000 atement Rocky Company provided the following inventory data for January: Units January 1 Balance 500 9 Purchase 1,500 29 ~~ Purchase 500. Unit cost 500 540 600 he entity used the periodic system and determined the TI inventory on January 31 at 750 units. Required: Compute the cost of ending inventory under FIFO and determine the cost of goods solds under average method. 555i fr ed) apte : A Ad xt of unimproved j,, 4 aier eRe a cuabdiv ided ad problem 17-1 urchase? oved and inte iS any purer, improven -k Company nd was, 300,000: pandmark COM ne 1and NY 43,6 tee i 726,850,000. T cost of ize but owing be differenea, residential lots sree same ot H sgferent Prices 28 folloy, vere a - sale ; in location in loca’ ae oF lots , Be coo ee 20 2,500,000 s 10 2,000,000 Z 10 3 dof the year are Lots unsold at the en! Br 4 lots Group 2 3 lots Group 2 Group 3 ired: an + the end of the year. Compuie the cost of unsold lots a' als: Problem 17-15 (IAA) ) | id for P18,000,000, rchased a plot of groun : P ! Tivoaaer uke aid an independent appraiser for the land the amount of P500,000. The land was developed as residential lots at a total cost of P41,500,000. The lots were classified as follows. Number of lots Sales price per lot Highland 20 1,000,000 Midland 40 750,000 Lowland 100 500,000 Required: Compute the total cost of each lot classification 556{744 Uhh) promhen? wend pnan COYAPY g avandia o y Meare A mpretaney ¥ vy oh the Oe o 4 o wr ear ain ereey reer ee to wrennory M Sona “ janes 70 F4s Mitt BD SAS wean be bth, ' i On ad Witt 4 pts . yan sonra AMY se vagservt one Beet F LOLI 146/09 6 WA 4 WALID 4 4 probhera 17 Zi AA) sansive Company previo’ th ttecrveeg weber ct OH Oe curren Yoat Cniew Unie com Toast wrrtt denusry 1 Inventory 70 hand a th GSS. Ape 9 Purchnee Gh 17 GLASS SSL LI 1S Oednsr 1 urchin The entity wid 400 unite on Sane Lp ane C0 on Dew 10. cot AO What is the weighted averag ond? a BAIA b. 400,000 TAYOO do M500 a a 2sued fact 60 6 Mh ie 1200 we “ wage vais eae on 8 jn the mot ave What » 7 bh wa e 4. “i Problem 17-24 (MAA) rovided the followin of January Sailbird Company P inventory for the mernith Unit cost Unite Jun, 1 Beginnicm 16D 40 6 Purcmee 4D 1) 10 bale 15,00) 1S Purchase DMD 1a ; 16 Purchase return = 1,00 oo 3.200 04, 2 4000 160,006 DB Bale return 4,000) 31 Purchase DMO Mh 4K) 04, What is the ¢ MOVING Ave. 0 January 94? ig average cost of the inventor FY on 4 786,00 b 750,000 © TOON 4. 7,630,000 56060,900 units aventory at July 31 re 52,100 funits available for sale" duly 1,45 roo goods sold during July 1,164 beginning inventory duly 1 4.00 pero profit on sales for July 93 Units unit cost Total cost aR 280,500 5 55,000 280 50 a 1 53,000 265. 900 15 45,000 47,500 16 000 00 js the number of units on July 2. 3, What a b. ¢ d. 2. How many units were sold during the month of July? a. 242,500 b. 140,000 ¢. 302,500 4, 260,000 entory on July 3 cost of the mv a = b. 410,000 312,60 a. 240,000 561oft La of lan y 70% a 4 fo! conveyed to the city ia] lot ee... subdivided into rest oe = A Number of 107 Bion Lot class Sn age 240 0 * 100 100,000 B 0 2 hat amount of «, thod, W) eal Using the relative wales value te? should be allocated to a, 3,000,000 b. 3,750,000 c. 6,000,000 d, 7,200,000 F, laptes Problem 17-26 (PHILCPA Adap Emerald Compan: mane er POO ae a i ud. COLD RR ahs ¢ STO of "Class B" which sells for P250 a dozen. Duri. the current year, 60,000 dozens were produced at an averag, cost of P360 a dozen, The inventory at the end of the curren; year was as follows: 2,200 dozens "Class A" @ P360 792,000 9,000 dozens "Class B"@ P360 1,080,000 en Total inventory 1,872,000 a Using the relative sales value method which management considers as a more equitable basis of cost distribution, what is the measurement of the inventory? : a. 1,170,000 b. 1,665,000 ¢. 1,872,000 d. 2,340,000 5627 (PHILCPA Adapted) aliches tO problem 1 rir Company bought a 10-hectare land ip Nov plixix ght a 10-hectare land i 5 pe improv bdivided into lots and ‘eventually sold. The purchase Price of the land was P5,800,000 Pixes and documentation expenses on the peanmten oe Ete property amounted to P80,000 Morelase Number of lots. Selling price por ot otal clearing cos F A 10 100,000 Be B 20 80,000 400,000 c 40 70,000 300,000 “4 50 60,030 g00,000 What amount should be allocated as total cost of Class B lots ales price method? under the relative s 4,176,000 1,220,000 1,276,000 d. 1,700,000 problem 17-28 (AICPA Adapted) During the current year, Link Development Company urchased a tract of land for P9,000,000. ‘Additional cost of P1,500,000 was incurred in subdividing the Jand during the year. Of the tract acreage, Jots and 30% was convey: Number of lots ided into residential 70% was subdiv: nd a park. ed to the city for road a Sales price per lot Lot class A 100 x 120,000 B 100 ‘ 80,000 c 200 5 50,000 Under the relative sales value method, what is the cost allocated to each Class A lot? a. 29,400 b. 42,000 c. 36,000 d. 26,250 563P ROBLE MS nventory 4 acP) problem 18 1¢ +e lo snowe’ vg Company © premier i = pits nit © 0 Materials: 1,000 BE 2000 a Z 3,000 HK i cit Goods in promoee ie 00 7 5.000 650 Finighed goods a0 00 B 7,000 730 Required: Determine the valuation of the ! measurement at LONRY. A clea + Problem 18-2 (IAA) The inventory of year is to be recor’ value. Ending invent Item Units A 1,000 B 1,500 c 1,200 D 1,800 E 1,700 Required: Determine the i he inventory value applying the low: } ower of cost ar Horny Company ded at the tory data stimated sale: Cost 120 110 150 140 130 net realizable value. per uni 582 lower of ¢' at the end of ta 180 140 170 190 200g-3 (AICPA Adapted) lis four PF problem ! res and ed at cont 0 instnever is lower wh anormal profit of 30% is usually mainté phe following information is compiled at yearend Ori Costto er product © Gispose selling Price selling PF 1 700 150 800 i 2 475 205 950 et 3 255 50 300 aA ie 450 260 1,000 ad Required: for each product applying ventory unit value ng in alizable value 10 measurh Determine the of cost and net rei problem 18-4 (IAA) following prodigal Company provided the information at year-end: Appliances Cara product A Product B Product © Units on hand 500 300 600 Unit cost 2,500 3,700 1,400 Netrealizable value 2,700 3,600 2,000 Required: Determine the inventory value at year- applied the lower of cost and net realiz: entity 583 the lower ventory ssorie® s Product D end, assuming able value.\2-" Z (AA) gpg inventory data e plem 13-5 i, followin® x f pro i comp” pe ? i we wine of first ve" Cost VR as ie 2,200,000 2,500,009 700,000 1,500,009 700,000 800,009 skis 400,000 500,009 ‘ Beat gui eaipm? (Ski apP! : pe ending inventory unde, Required: prepare) d rect metho a. Direc! tid p, Allowance me m 18-6 (IAA) White Company carr following per-unit data first year of operations: p-4 me in inventory. The se items at the end of Proble ed four ite relate to the! sx sales price Sollingcost Normal prof Units Cor Category I: A 25,000 105 130 15 20 B 20,000 85 90 10 10 Category 2: c 40,000 50 45 5 B D 30,000 65 16 15 10 ! Required: ! Calculate the value of the inventory under the followi ving approaches: a. The LONRV is appli i r C pplied to th g ee LONRV is applied to he i ¢. The LONRY is applied to the j individual inventory item nventory category inventory as a whole 584problem 18-7 (AICPA Adapted) pr ..end which Company prepared a trial ba 1 the following accounts: qarmae jncluced 15,000,000 (100,000 units at P150) 1,000,000 gales rhe 9,400,000 rae : . 400,000 purchase discoun rhe inventory purchases during ha yennvare on OT : Units Unit cost Total cost poginning inventory, January 1 20,000 60 1,200,000, Pemchases, quarter ended March 31 0000 es 20.000 pureh' quarter ended June 30 40,000 70 500 000 Purels quarter ended Sept. 30 50,000 75 3,750,000 purchases, qa ended Dec. 51 10,000 30 500,000 600. 000 150,000 at the lower of is to report inventory 0 nventory. Cost is ilue applied to total i first-in, first-out method. Phe accounting policy cost and net realizable determined under the rent year, the entity reported an At the beginning of curr itedown of p400,000. allowance for inventory wri entity determined that the replacement cost of inventory was P70 per unit and the net realizable value is P10 per unit. was P72 per unit. The normal profit margin i At year-end, the Required: 1. Preparea schedule of cost of goods sold for the current year. 2. Prepare journal entries to record the ending inventory and any inventory writedown.proplem 18-10 (AICPA Adapted) pventory on # saurimony Company determined the year-end in MFO asia at P4,000,000. E x to =rtaining que entity provided the following information Pe tne inventory: 4,050,000 gstime 200, ae 500,000 Normal profit margin 000,000 Current replacement cost i i - of cost and net he entity measured inventory at the lower of cost @ lizable value. ar-end? rea What is the carrying a. 4,000,000 3,850,000 "8,360,000 d. 3,500,000 ' j2-8 Ya Problem 18-11 (AICPA Adapted) Cherry Company Based on a physical inventory at year-end, I a FIFO basis at determined the chocolate inventory on 2,600,000 with a replacement cost of P2,500,000. amount of the inventory at ye Cherry Company estimated that, after further processing costs of P1,200,000, the chocolate could be sold as finished candy bars for P4,000,000. The normal profit margin is 10% of sales. Under the lower of cost and net realizable value, what amount should be reported as chocolate inventory in the year-end statement of financial position? a. 2,800,000 b. 2,600,000 c. 2,400,000 d. 2,500,000 587zarchy Obiemowin® © Ro) _ partial General administration cost nple ycommk ted invent the fo! agin progucion ott inca Product costs 1 ue feng cost ; , inventory Selling pric? sie of t0 5 ealizable va What 18 the net re ze 100,000 b. 2'300,000 e 400,000 d. 100,000 \a- 4 Problem 18-13 (RS) ’ ; oducts with cost and cling Gatekeeper Company ha® two P ice as follows: price as fo) Product X ereduct % 2,000,000 3,000,061 Sells prte pet. 600,000 70g ue fates ands 1,500,000 a ate ‘ on ‘foo. 700 0 ‘Materials and conversion om 50,000 oi At year-end, the ma nufacture of inventory has ig cost has yet been incurred completed but no sellin 1. Under LONRV by individual item, the inventory shall | measured at what amount? a. 8,700,000 b, 3,200,000 ¢. 3,800,000 d. 3,300,000 2 U INRV Inder LONRV by total, the inventory shall be m e ie: at what amount? 2. 3,300,000 5. 3,700,000 i 3,800,000 200,000 588 asuredand ba problem 18-14 (IFRS) jed the retailer of Itaban furniture end, the entity PZ uck Company is a 00. O00 a 0.000, guimmmajor product lines. At ye 0200 Pijowing inventory data: fy 7 er unit Units Unit cost NRY Pt = sofas 100 1,000 1.020 ing tables 200 9 350 . 300 500 1,600 400 750 ve \ 500 250 \ at is the inventory at year-end using the lower of cost and net realizable value? ty : a. 1,040,000 b. 1,075,000 ce 1,998,000 4. 2,033,000 Problem 18-15 (IAA) le- I at the lower of cost and Gem Company measured inventory § Data regarding the items in the net realizable value inventory are as follows: Markers Pens Highlighters Historical cost 240,000 188,000 300,000 Selling price 360,000 250,000 360,000 Eistimated cost to complete 48,000 50,000 68,000 Replacement cost 208,000 168,000 318,000 Normal profit margin asa percentage of selling price 25% 25% 10% What is the measurement of the inventory? a. 720,000 b. 728,000 c. 676,000 d. 694,000 589AM proble®™ 18 td a era ; or? pramond 00% antes oe £7, aso oH Teco to, 3 Pat? een = On Oe re 2018 at * Prag gold 14 Jo per ounce sor ry prt gold | p00 per Mi a. the price | wh he I purchaee eommipment to be re 1 What ie che lone : : cenpecember #1. 2017 ) , 400,000 100,000 390,000 a 0 what jo the gain Of Pure hase commitment to | ry 16, 2017? recognined on Febr a. 400,000 b. 900,000 = 100,000 4 0 & What amount should be debited to purc ie February 15, 2018? a 3,000,000 b 8,100,000 e. 2,700,000 d. §,600,000 4 What amou . ount should be , on February 15, 2018? recognized a8 accounts payat : ayabl; a. 2700,000 b. 3,100,000 ¢. 3,600,000 d. 3,000,000Using the inventory pa Adapted) information for Problem 20-5 (AIC - Boon Company provided the follow current year: . 500,000 Beginning inventory 2 Sto 00 Purchases 2600p A physical inventory taken at year-end resulted in an ending inventory of P500,000- ained constant at 25% in The gross profit on sales has rem recent years. The entity suspects some inventory may have been taken by a new employee. What is the estimated cost of missing inventory at year-end? a. 600,000 b. 100,000 c. 440,000 d. 0 648em 20-6 (AICPA Adapted) nation for probl jbacy Company provide - consent oe ided the following inform eesins reniory 350,000 chases 2,300,000 Pore pace oturns 30,000 preight 60,000 ee 3,400,000 gales discounts 20,000 Boies returns 30,000 At year-end, a phe inventory revealed that the ending inventory as puly P420,000. The gross profit on sales has eine soap at 30%. The entity suspects that some jnventory may have been pilfered by one of the employees. hat is the estimated cost of missing inventory at year-end? 151,000 ~ 165,000 ¢. 420,000 dg. 585,000 problem 20-7 (AICPA Adapted) d, Delectable Company experienced 4 storm surge inventory- Based d severe damage to the entire 00 5% on At year-en' the entity had a gross profit of 2! which cause! on recent history, sales. ‘ The following information is available for the current year: Beginning inventory 520,000 Purchases 4,120,000 Purchase returns 60,000. Sales 5,600,000 Sales returns 400,000 Sales allowances 100,000 of goods.sold for the current year? What is the estimated cost a. 3,360,000 b. 3,830,000 ce. 3,900,000 d. 3,825,000 649nb infl nthe follows » 10 The the nin sanuers ! Inventor? Purchase? Net lee ed cost Vhat the enti ate a omg? Whey ended sep’ per 32: 7 a, 6,600,000 b. 4,970,000 e. 5,098,000 d. 5,600,000 d amount of fire loss? What is the a. 1,500,000 p, 1,400,000 a 2,004,000 d. 1,964,000 Problem 20-9 (IAA) Charo Company provided the current year? Net sales Prej At in eure ase discounts nding inventory ,00C 120,000 40% Gross margin What is th he cost of goods available for sale? ale? on h RO estimate’ following information for tf or the a. 1,200,000 b. 1,220,000 ¢. 840,000 d, 960,000 650proplem 20-10 (AICPA Adapted) Pen Company reported the fo ee for om he following informatio! Karent year: Mowing information ou janing inventory 5,000,000 parcnases 26,000,000 jghtin 2,900,000 Betase toturns and allowances 3,500,000 Ferebaee discounts 7,500,000 gales 40,000,000 Bales returns 3,000,000 ipelenaliowances 500,000 Bales discounts 3,000,000 Metiyaies inventory taken at year-end resulted in an ending Afentory costing P4,000,000 h selling At year-end, unsold goods out on consignment wit price of P1,000,000 are in the hands of a consignee. phe gross profit was 40% on sales. What is the cost of goods available for sale? ao 28,000,000 31,000,000 33,000,000 29,500,000 a. b. c. d What is the cost of goods sold? a. 21,900,000 b. 22,200,000 ¢. 21,300,000 d. 24,000,000 What is the estimated cost of inventory shortage? a. 1,800,000 b. 2,700,000 c. 1,200,000 d. 2,100,000 6512. 2200,000 b. 1,840,000 ce. 1,600,000 i> d. 1,780,000 3 =] Problem 20-15 (AICPA Adapted) eint Col ¥ n operations at the beginnin gperatl at the be F Company began ope: S year. The following information 1S year: Total merchandise purchases nding inventory Collections from customers All merchandise is marked to sell at 40% above cost. All are credit sales and all accounts are collectible. What is the balance of accounts receivable at year a. 1,600,000 b. 2,440,000 ¢. 3,000,000 d. 3,840,000 “end?Ng 0 Oy 0 he Ss the, proviem 20-16 (AICPA Adapted) ‘ o night of September ga he ied dest 1 l for PA Mie that normal eepds that normally sell for PE ory January 1,201 660.06 [vero cea, January 1 h Sept pl . january 1 thr 01 ; 2015 2014 not sales 000,000 1,000,006 Goat of goods = ad 3,840,000 200,000 710,006 what is the amount of fire loss to be recognized on Sep tember go, 2017? 700,000 . 615,000 ¢. 630,000 d, 580,000 problem 20-17 (AICPA Adapted) Greenhorn Company provided the following information for the current year: unts receivable, January 1 800,000 Accounts receivable collected 2,600,000 Cash sales 500,000 Inventory, January 1 1,200,000 Inventory, December 31 1,100,000 Purchases 2,000,000 Gross profit on sales 900,000 What is the balance of accounts receivable on December 31? a. 700,000 b. 1,200,000 c. 1,700,000 d. 1,300,000 655J My LJ py f AA) noel 4 int prope vets polio ‘a wine ¥ rainy Compan’ 7,000,000 1000 6 AOL 160,000 palew 2 panne eel y frurehanes ee yoni ith prensa oi Purclinne reviene Hee pureiinae allowance’ eine Hindinng everson wary On pee ember ai, O17? 120,00 What ie the inven 470,000 02 000 ¢. 9,280,000 d. 4,006,000 9-19 TAA) Problem Z At the current year and, « storm surge damaved warehouse of Braveheart Company . scoounting records ” niory and many # a ‘The entire inve completely dewtroyed. January) Decombey 1 1,600,000 Inventory Purchasgs 6,500,009 My wh wales fees tions of accounts receivable GOK z connie receivable 7 6,400 ¢ . . /ross profit rate on sales WOOO 1,10 006 100,006 Wi, What is the invents $ lo a ory lowe from the storm eurge? b. 1,720,000 ©. 2,700,000 4, 2,260,000 656problem 20-20 (LAA) jp December 2017, Unanimous Company } ad a mignificar Paetiont of Inventory atoler ho entity determined the cost of inventory Pot solen t 100.000 : : 217 2016 purchase 5,200,000 5,000,000 Purchase returns and allowsne 20,00 200,006 bes 7,880,000 8,200,006 Gales returns and allowance 0,000 200,006 Peginning inventory 1,200,000 2,000,006 What io the « stimated cost of the stolen invento? 700,000 600,000 ¢, 644,000 4. 144,000 p- problem 20-21 (IAA) Wearisome Com chandise on a consignment pasis to dealers. The gross profit 25% above cost The dealer is paid a 10% commission of the sales price a cash bi all sales made. All dealer sales are made on occurred during the any sold m for The following consignment activities 8,800,000 current year: Manufacturing cost of goods shipped on consignment Gales price of merchandise sold by dealers 9,600,000 Payments rem itted by dealers after deducting commission 6,300,000 What was the gross profit on consignment sales? a. 2,400,000 b. 1,920,000 ¢, 1,700,000 d, 1,220,000e in the warehous 7 broke out in the | i au 7, 0 By inventor he follow ng gy ene # nie On Deco? Re at panda A anble Be" ganuary 1 Decembor g) 500,000 480, 000 aan 000 0 Tavera receivable 400,006 >: ae 000 hie aE n SP acount sqreceivale 2.640, om Collection on $ : P 200, Berens S = Peer at salesPrice Bee 009 Goods out on cons!E om Salvage value of inventory 2016 2015 a 2,800,000 700,00" 2,500,000 ane 1,260,000 1,080,000 Begone amount of purchases for the current year? 1. What is the a. 1,700,000 b. 1,600,000 e. 1,500,000 d. 2,100,000 2. What is the amount of sales for fecrrentivear? a. 2,600,000 b. 2,680,000 c. 2,640,000 d. 2,200,000 3. What i iny ry at is the inventory fire loss on December 31, 20 7? Vhat , 2017? a. 600,000 b. 420,000 ¢. 508,000 d. 500,000 658