Q25-26

1.) Marker Company has the following information pertaining to its merchandise inventory as of December 31, 2019:

Inventory on hand (including merchandise received on consignment of P 20,000)	200,000
Inventory purchased with a buyback agreement	100,000
Merchandise in transit, FOB shipping point, including P 5,000 freight cost	155,000
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	250,000
Merchandise in transit, CIF (including insurance cost and freight of P 8,000)	175,000

What amount should Marker Company report as value of its inventory in its 2019 statement of financial position?

Group of answer choices

P 757,000

P 857,000

P 749,000

P 763,000

2.) Feelings Company sold selected merchandise on a consignment basis during 2019. Freelings 2019 accounting records show the following information:

Inventory on hand, December 31 290,000 Inventory, January 1	244,000
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
Inventory on hand, December 31	290,000

What amount should Feelings report as cost of goods sold in 2019 statement of comprehensive income?

Group of answer choices

P 1,094,000

P 1,014,000

P 1,024,000

P 1,354,000