35-37

PLEASE PROVIDE A SOLUTION

1.) During January 2020, Metro Company which maintains a perpetual inventory system recorded the following information pertaining to its inventory:

Date	Transactions	Units	Unit Cost	Total Cost	Units on Hand
January 01	Inventory balance	1,000	40	40,000	1,000
04	Purchases	600	120	72,000	1,600
20	Sales	900			700
25	Purchases	400	200	80,000	1,100

Under the moving average method, what amount should Metro report as inventory at January 31, 2020?

Group of answer choices

A. P 105,600

B. P 132,000

C. P 156,000

D. P 129,000

2-3) The Savior Company uses the lower of cost or net realizable value inventory. Data regarding the items in work in process inventory are presented below:

	Markers	Pens
Historical cost	24,000	18,880
Selling price	36,000	21,800
Estimated cost to complete	4,800	4,800
Replacement cost	20,800	16,800

Normal profit margin as a percentage of selling price 25% 25%

2.) What is the amount of markers inventory to be reported in Saviors statement of financial position?

Group of answer choices

A. P 31,200

B. P 20,800

C. P 23,400

D. P 24,000

3.) What is the amount of pens inventory to be reported in Saviors statement of financial position?

Group of answer choices

A. P 18,880

B. P 26,000

C. P 17,000

D.P 21,800

PLEASE PROVIDE A SOLUTION