Answer the following

b. PROBLEM 12-11 Lower of Cost or Net Realizable Value A bookkeeper has provided you with the following information regarding inventory on hand at December 31, 2021, used in the manufacture of two product lines: motorbikes and bicycles: NRV: if sold as a completed product P65,000 15,000 NRV: if sold 'as is' P45,000 25,000 Cost 100,000 40,000 Raw materials: P Supply of steel (used for motorbikes) Supply of aluminum (used for bicycles) 60,000 20,000 50,000 Work-in-process: Incomplete motorbikes Incomplete bicycles 80,000 30,000 50,000 80,000 20,000 60,000 65,000 25,000 40,000 N/a Finished Goods: 160,000 170,000 Motorbikes 80,000 60,000 Bicycles 80,000 N/a 110,000 Total 340,000 The lifecycle of both product lines is coming to an end and the company has decided that where it is more profitable to sell a class of inventory such as raw materials 'as is' than to convert it into the finished product, then the class of inventory will be sold 'as is'. Cost of sales before any adjustments to the cost of inventory was P450,000. Questions: Based on the above data, answer the following: 1. How much is the inventory write-down for the raw materials? a. P35,000 c. P25,000 b. P15,000 d. Nil 2. How much is the inventory write-down for the work-in-process? a. P25,000 c. P20,000 b. P15,000 d. P5,000 425 Chapter 12 - Inventories 3. How much is the inventory write-down for the finished goods? a. P25,000 P20,000 b. P15,000 d. Nil a 4. Adjusted cost of sales amounts to a. P505,000 b. P495,000 c. P500,000 d. P490,000