Answer with solutions.
Question 10 1 pts A new entity manufacturing and selling consumable products has come out with an offer to refund the cost of purchase within one month after the sale if the customer is not satisfied with the product. When should the entity recognized the revenue? O After one month of sale. O When goods are sold to the customers. O Only if the goods are not returned by the customers after the period of one month. O At the time of sale along with an offset to revenue of the liability of the same amount for the possibility of the return.Question 14 1 pts Which is the method of accounting for inventories in which the cost of goods sold is recorded each time a sale is made? 0 Periodic inventory system 0 Perpetual inventory system 0 Planned inventory system 0 Professional inventory system Question 21 2 pts A retailer imported goods at a cost of P 260,000, including P 40,000 non-refundable import duties and P 20,000 refundable purchase taxes. The risks and rewards of ownership of the imported goods were transferred to the retailer upon collection of the goods from the harbor warehouse. The retailer was required to pay for the goods upon collection. The retailer incurred P 10,000 to transport the goods to its retail outlet and a further P 4.000 in delivering the goods to its customer. Further selling costs of P 6,000 were incurred in selling the goods. What amount should the inventory be valued? O P 270,000 0 P 260,000 0 P 240,000 0 P 250,000 Question 22 2 pts The balance in Page Company's inventory account on December 31, 2019 was P 1,225,000 before the following information was considered: - Goods shipped FOB Destination on December 20, 2014 from a vendor to Page were lost in transit. The invoice cost of P 45,000 was not recorded by Page. On December 28, 2019, Page notied the vendor of the lost shipment. - Goods were in transit from a vendor to Page on December 31, 2019. The invoice cost was P 60,000 and the goods were shipped FOB shipping point on December 28, 2014. Page received the goods on January 1, 2020. What amount of inventory should be reported in the December 31, 2019 statement of nancial position? 0 P 1,330,000 0 P 1,225,000 0 P 1,2?0,000 0 P 1,285,000 Question 24 2 pts The inventory on hand at December 31, 2020 for Conrad Company is valued at a cost of P 947,300. The following items were not included in this inventory amount: 1. Purchased goods in transit, shipped FOB destination. Invoice price P 32,000, which includes freight charges of P 1,600. 2. Goods held on consignment by Conrad at a sales price of P 23,000, including sales commission of 20% of the sales price. 3. Goods sold to Ube Company, under terms FOB destination, invoiced for P 24,400 which includes P 1,000 freight charges to deliver the goods. The goods are in transit. 4. Purchased goods in transit, terms FOB shipping point. Invoice price P 48,000. Freight costs. P 3,000. 5. Goods out on consignment to Can Company, sales price, P 36,400. Shipping cost of P 2,000. Mark-up on cost for all sales is 30%. What is the correct cost of inventory to be reported in Conrad's nancial statements? 0 P 1,046,800 0 P 1,022,400 0 P 1,078,800 0 P 1,041,000 Question 25 2 pts Marker Company has the following intormation pertaining to its merchandise inventory as of December 31, 2019: Inventory on hand (including merchandise received on consignment of P 20,000) Inventory purchased with a buyback agreement Merchandise in transit, FOB shipping point, including P 5.000 freight cost Merchandise in transit, free alongside, including delivery cost alongside the vessel of P 6.000 but excluding the cost of shipment of P 3,000 Merchandise in transit, CIF (including insurance cost and freight of P 8,000) What amount should Marker Company report as value of its inventory in its 2019 statement of nancial position? 0 P 749,000 0 P 757,000 0 P 857,000 0 P 763,000 200.000 100.000 155.000 250.000 175.000 Question 26 2 pts Feelings Company sold selected merchandise on a consignment basis during 2019. Freeling's 2019 accounting records show the following information: Inventory, January 1 244,000 Inventory on hand, December 31 290,000 Inventory on consignment, December 31 40,000 Purchases 1,080,000 Freight-in 20,000 Freight-out to customers 70,000 Freight-out to consignees 10,000 What amount should Feelings report as cost of goods sold in 2019 statement of comprehensive income? O P 1,354,000 O P 1,014,000 O P 1,024,000 O P 1,094,000Question 23 2 pts On March 1. 2020, Good Company purchased a tract of land for P 18,000,000. Good incurred additional cost of P 4,500,000 during the remainder of year 2020 in preparing the land for sale. The land was subdivided into residential lots as follows: Lot Class Number of Lots 100 100 200 Sales Price 0; 240.000 160.000 100,000 Using the relative sales price method. how much should be allocated to Class A lot? 0 P 0,640,000 0 P 9,000,000 0 P 10,000,000 0 P 7,200,000 Question 31 2 pts Clothes Company maintains a markup of 60% based on cost. The company's selling and administrative expenses average 30% of sales. Annual sales were P 1,440,000. How much should be reported as cost of sales and Operating profit, respectively? O P 864,000; P 432,000 O P 864,000; P 144,000 O P 900,000; P 108,000 O P 900,000; P 432,000Question 34 2 pts Light Company is a wholesaler of scented candles. The activity for item number 1234 during June, 2020 is presented below: Date June 01 04 12 19 22 29 Transactions Inventory balance Purchases Sales Purchases Sales Purchases Units 6,000 9,000 10,300 14,400 1 1,400 4.800 Cost 20 24 26 27 Under the FIFO perpetual inventory system. how much is the ending inventory of item number 1234 at June 30? O P 280,800 C) P 316,800 0 P 302,400 C) P 278,400 Question 35 2 pts During January 2020, Metro Company which maintains a perpetual inventory system recorded the following information pertaining to its inventory: Date Ja nu a ry 0 1 04 20 25 Transactions Inventory balance Purchases Sales Purchases Units 1,000 600 900 400 Unit Cost 40 120 200 Units on Total Cost Hand 40,000 1,000 72,000 1,600 700 80,000 1,100 Under the moving average method. what amount should Metro report as inventory at January 31, 2020? O P 156,000 0 P 129,000 0 P 132,000 0 P 105,600 Question 36 2 pts 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 25% 25% selling price What is the amount of markers inventory to be reported in Savior's statement of financial position? O P 24,000 O P 31,200 O P 23,400 O P 20,800Question 37 2 pts 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 25% 25% selling price What is the amount of pens inventory to be reported in Savior's statement of financial position? O P 21,800 O P 17,000 O P 18,880 O P 26,000
