PROBLEM 1-1 pt Company A provided the ff information at current year-end: P 2,000,000 Finished goods in storeroom at cost including overhead of P400,000 Finished goods in transit, including freight charge of P20,000, FOB shipping point Goods process, at cost of materials direct labor Materials Material in transit, FOB shipping point Defective materials returned to suppliers for replacement Shipping supplies Gasoline and oil for testing finished goods Machine lubricants 250,000 720,00 1,000,000 50,000 100,000 20,000 110,000 60,000 Determine cost of inventory at year-end. PROBLEM 2 - 10 pts Company A began operations in the current year. The entity used perpetual inventory system. During the year, the company purchased merchandise having a gross invoice cost of P1,500,000. All purchases were made under the terms 5/10, n/30, FOB destination. Relative to this, the company paid freight expenses of P100,000. The company was able to pay 80% of the purchases within the discount period but the remaining purchases were paid beyond 10 days. 70% of the purchases were sold for P1,200,000. Prepare journal entries to record the transactions using gross method and net method. PROBLEM 3-3 pts Company A reported that a flood recently destroyed many of their financial records. The entity used average cost inventory valuation. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 Total cost of units available for sale in July Cost of goods sold during July Cost of beginning inventory, July 1 Gross profit on sales for July 60,000 units 1,452,100 1,164,100 4.00 per unit 935,900 July 5 July 11 July 15 July 16 Units 55,000 53,000 45,000 47.000 200,000 Unit Cost Total Cost 5.1 280,500 5 265,000 5.5 247,500 5.3 249.100 1,042.100 Total purchases Determine: (1) Cost of ending inventory on July 31 (2) Cost of goods sold under FIFO valuation method (3) Cost of ending inventory on July 31 under FIFO valuation method PROBLEM 4-6 pts The following information were obtained from Company A's accounting records: P Sales for the 11 months ended November 30 Sales for the year ended December 31 Purchases for 11 months ended November 30 Purchases for year ended December 31 Inventory, January 1 Inventory, November 30 (per physical count) 3,400,000 3,840,000 2,700,000 3,200,000 350,000 380,000 4,000 6,000 . 8,000 Additionally, the following were noted: Shipments received in unsalable condition and excluded from physical inventory: Total at November 30 Total at December 31 (incl. Nov. 30 Unrecorded returns) The returns were not recorded because no credit memos were received from vendors. Deposit made with vendor and charged to Purchases in October. The goods were shipped in January of the current year. Deposit made with vendor and charged to Purchases in November. The goods were shipped FOB destination on November 29 and were included in the physical inventory as goods in transit Shipments received in November and included in the physical count at November 30 but recorded as December purchases. Due to the carelessness of the receiving department, a December shipment was damaged by rain. These goods were later sold at cost in December. 22,000 . 30,000 40,000 Based on the preceding information, determine: (1) Net purchases for the year ended December 31 (2) Cost of goods sold for the year ended December 31 (3) Estimated ending inventory as of December 31 PROBLEM 5-3 pts Company A provided the following data: 500,000 770,000 3,070,000 4,300,000 70,000 45,000 Beginning inventory Cost Selling price Purchases: Cost Selling price Transportation in Purchase discount Purchase return: Cost Selling price Sales return Sales discount Markup Markdown Cancelation of markup Cancelation of markdown Sales 25,000 40,000 80,000 20,000 100,000 350,000 30,000 10,000 4,000,000 Determine estimated cost of ending inventory under: (1) LCNRV approach (2) Average cost approach (3) FIFO approach PROBLEM 6 - 1 pt Company A is engaged in raising dairy livestock. The entity provided the following information during the current year: P 5,000,000 2,000,000 400,000 Carrying amount on January 1 Increase due to purchases Gain arising from change in fair value less cost of disposal attributable to price change Gain arising from change in fair value less cost of disposal attributable to physical change Decrease due to sales Decrease due to harvest 600,000 850,000 300,000 Determine the carrying amount of the biological asset on December 31. PROBLEM 7 - 3 pts Company A had a herd of 10 2 y/o animals at the beginning of the current year. One animal aged 2.5 years was purchased on July 1 for P108 and one animal was born on July 1. No animals were sold or disposed of during the year. Fair value less cost of disposal per unit: Jan 1 Jul 1 70 New born animal 6-month old animal 2 y/o animal 2.5 y/o animal 3 y/o animal Dec 31 72 80 105 100 108 111 120 Determine: (1) Fair value of the biological assets on December 31 (2) Gain from change in fair value of biological assets that should be recognized in the current year (3) Gain from change in fair value due to price change