Apple Corp. uses the FIFO method in calculating cost of goods sold for the three products that the company sells. At March 1, the balance of inventory account was P 14,852,500, and the allowance for inventory writedown was P2,900. Inventories and purchase information concerning the three products are given for the month of March.

On March 31, the companys suppliers reduced their selling prices from the most recent purchase prices by the following percentages: Product C, 20%; Product P, 10%; Product A, 8%. Accordingly, Apple decided to reduce its sales prices on all items by 10% effective August 1. Apples selling cost is 10% of sales price. Product C and P have a normal profit (after selling costs) of 30% on sales price, while the normal profit on Product A (after selling cost) is 15% of sales price.

a. The amount of inventory to be reported on the companys statement of financial position at March 31 is?

b. The loss on inventory writedown for the month of March is?

Units Unit Cost / SP Units 235,000 P11.50 180,000 105,000 P10.00 150,000 80,000 P14.00 250,000 P15.00 200,000 170,000 130,000 P Unit Cost / SP Units P15.00 210,000 P14.00 120,000 A Unit Cost / SP P45.00 P43.00 Inventory Purchases Purchases Sales Inventory P46.00 P17.00 200,000 130,000