Problem #1:

On December 31,2020, Rodolf Companys ending inventory prior any adjustment is valued at P745,000. The following inventory related transactions:

a. Goods costing P150,000 are on consignment with a customer. These goods are not included

in the physical count on December 31, 2020.

b. Goods costing P116,500 were delivered to Rodolf Company on January 4, 2021. The invoice for these goods were received on January 10,2021. The invoice showed the shipment was made on December 29,2020, FOB Shipping point.

c. Goods costing 121,640 were shipped FOB Shipping point on December 31,2020 and were received by the customer on January 2,2021. These goods were included in the 2020 ending Inventory.

d. Goods costing P108,640 were shipped to a customer on December 31,2020, FOB Destination. These good were delivered to customer on January 2,2021 and were not included in the inventory.

What is the correct amount of inventory?

Problem # 2

Rodolf Company has the following information in December 31,2020:

Product X Product Y

Cost 70 80

Selling Price 80 100

Estimated cost to distribute 20. 12

The units on hand for Product X and Product Y is 100,000 and 80,000 respectively

The company measured the inventory at LCNRV

1. What is the amount of inventory on December 31, 2020?

2. What is the NRV for Product Y and what amount of inventory should be recorded as Inventory for

Product Y?