Sales * 2 points As part of your audit of receivables of Jasmin Corporation, you performed a cut-off test of sales. Results of the cut-off test revealed the following: Recorded as Sales in December 31, 2017 Invoice Selling Shipment Received by No. Price Cost Terms Date customers 123 P18,000 P16,500 FOB Shipping Point 12/26/2017 12/29/2017 124 12,500 10,200 FOB Destination 12/26/2017 12/29/2017 125 8,680 7,240 FOB Destination 12/28/2017 01/02/2018 126 14,200 12,500 Shipped to consignee 12/29/2017 01/02/2018 127 9,000 7,500 FOB Shipping Point 12/30/2017 01/02/2018 128 10,000 7,750 FOB Destination 12/31/2017 01/03/2018 129 7,800 6,100 FOB Shipping Point 12/31/2017 01/02/2018 130 14,000 12,000 Shipped to consignee 12/31/2017 01/02/2018 Recorded Sales in January 2018 Invoice Selling Price Cost Shipment Terms Received by No. Date customers 131 P21,000 P18,200 FOB Shipping Point 12/31/2017 01/03/2018 132 10,500 8,800 FOB Destination 12/30/2017 01/03/2018 133 4,500 3,200 FOB Destination 01/02/2018 01/03/2018 134 6,500 5,000 FOB Shipping Point 01/02/2018 01/05/2018 A count of all inventories within the premises was made in the afternoon of December 30, 2017 (after deliveries were made for the day). The total cost of the count was recorded as inventories as of December 31, 2014. The goods shipped to consignees are still unsold at December 31. The unadjusted ledger balances show the following: Cost of sales P 842,000 Sales 1,320,000 Inventories 425,000 Accounts receivables 276,500 P1,294,120 O P1,304,620 O P1,322,320 P1,351,500Cost of sales * 2 points As part of your audit of receivables of Jasmin Corporation, you performed a cut-off test of sales. Results of the cut-off test revealed the following- Recorded as Sales in December 31, 2017 Invoice Selling Terms Shipment Received by Cost No Price Date customers 123 P18,000 P16,500 FOB Shipping Point 12/26/2017 12/29/2017 124 12,500 10,200 FOB Destination 12/26/2017 12/29/2017 125 8,680 7,240 | FOB Destination 12/28/2017 01/02/2018 126 14,200 12,500 Shipped to consignee 12/29/2017 01/02/2018 127 9,000 7,500 FOB Shipping Point 12/30/2017 01/02/2018 128 10,000 7,750 FOB Destination 12/31/2017 01/03/2018 129 7,800 6,100 FOB Shipping Point 12/31/2017 01/02/2018 130 14,000 12,000 Shipped to consignee 12/31/2017 01/02/2018 Recorded Sales in January 2018 Invoice Selling Shipment Received by Cost Terms No. Price Date customers 131 P21,000 P18,200 | FOB Shipping Point 12/31/2017 01/03/2018 132 10.500 8,800 FOB Destination 12/30/2017 01/03/2018 133 4,500 3,200 FOB Destination 01/02/2018 01/03/2018 134 6,500 5,000 FOB Shipping Point 01/02/2018 01/05/2018 A count of all inventories within the premises was made in the afternoon of December 30, 2017 (after deliveries were made for the day). The total cost of the count was recorded as inventories as of December 31, 2014. The goods shipped to consignees are still unsold at December 31. The unadjusted ledger balances show the following: Cost of sales P 842,000 Sales 1,320,000 Inventories 425,000 Accounts receivables 276,500 O P817,500 O P828,360 O P846,560 O P837,760How much should be reported as other comprehensive income/loss in the 2 points statement of comprehensive income for 2017 in relation to the investments? * Peppa Pig Inc. acquired 100,000 ordinary shares of Daddy Pig Corp. for P5 per share and 250,000 ordinary shares of Mommy Pig Inc. for P10 per share on January 2, 2016. Both Daddy and Mommy Pig have 1,000,000 ordinary shares outstanding. The book values of the net assets of Daddy Pig and Mommy Pig on the acquisition date were P4,500,000 and P9,000,000, respectively. The fair values of the net assets of both Daddy Pig and Mommy Pig approximated their book values on the acquisition date, except for one of Mommy Pig's depreciable asset having a remaining life of 5 years, which was understated by P500,000. Both securities are being held as long term investments. Your investigation revealed the following changes in Retained Earnings of Daddy Pig and Mommy Pig for 2016 and 2017 based on their respective audited financial statements: Daddy Pig Corp. Mommy Pig Inc. Retained earnings (Deficit), 1/1/16 P2,000,000 P350,000) Cash dividends, 2016 (250,000) Profit for 2016 400,000 650,000 Retained earnings, 12/31/16 P2,150,000 P300,000 Cash dividends, 2017 (300,000) 100,000) Profit for 2017 600,000 150,000 Retained Earnings, 12/31/17 P2,450,000 P250,000 Market values of shares: 12/31/16 P7.00 per share P12.00 per share Market values of shares: 12/31/17 5.50 per share 15.00 per share O None O P50,000 gain O P150,000 gain P50,000 loss\fAssuming that the gross profit rate is based on cost, determine the cost 2 points of goods sold * On December 31, a fire damaged the finished goods of Francis Corporation. Financial records before the fire follow: January 1 December 31 Gross Profit 20% Purchase discounts P 80,000 Purchase returns and allowances 70.000 Freight-in (on account) 100,000 Purchases 3.000.000 Sales discounts 100,000 Sales 5,100,000 Finished goods P 400,000 Work in process 250,000 280,000 Direct materials 200,000 320,000 Accounts payable 555,000 250,000 Additional information: Cost of goods out on consignment is P20,000, and finished goods damaged by fire can be sold at a salvage value of P10,000. . Direct labor is P900,000 and Factory overhead is P675,000. O P4,080,000 O P4,250,000 O P5,100,000 O P5,020,000\fLand, assuming that on the date of acquisition, the land and building have 2 points fair values of P7,000,000 and P1,000,000 respectively. * Rommel Company acquired land and building on April 1, 2020 by paying P9,000,000 and assuming a| mortgage of P1,000,000. The old building will be demolished for the construction of a new building. 1. Proceeds from salvage of the demolition, P4,000; 2. Demolition cost of the old building, P33,000; 3. Removal of safety fence, P9,800; 4. Safety fence around construction site, P35,000; 5. Service equipment and fixtures made a permanent part of the structure, P11,000; 6. Other overhead cost incurred as result of construction, P220,000' 7. Cost of paving parking lot adjoining building, P50,000; 8. Rental fees generated on the portion of the building being used as a parking site, P23,500; 9. Broker's fee on the properties acquired, P10,000; 10. Payment for claim for injuries not covered by insurance, P40,000; 11. Driveway and walk to building (part of building plan), P30,000; 12. Materials used in construction, P600,000; 13. Architect fee, P50,000; 14. Building permit and licenses, P60,000; 15. Cost of removing trees from the land, P70,000; 16. Legal fees for contract to purchase the land, P11,000; 17. Payments to tenants of the properties to induce them to vacate the premises, P3,000; 18. Payment to real estate agent, P40,000; 19. Cost of relocating and reconstructing the property belonging to others in order to acquire the properties, P23,000; 20. Escrow fees on the properties acquired, P11,000; 21. Excavation cost, P12,000; 22. Cost of option of the acquired properties, P20,000; 23. Unpaid real property taxes up to the date of acquisition, P14,000 QUESTIONS: Based on the above data, determine the adjusted cost of the following: D (Ctrl) . O P8,855,875 O P10,202,000 O P8,936,875 O P10,265,500The income from investment in Mommy Pig Inc. shares in 2016 is * 2 points Peppa Pig Inc. acquired 100,000 ordinary shares of Daddy Pig Corp. for P5 per share and 250,000 ordinary shares of Mommy Pig Inc. for P10 per share on January 2, 2016. Both Daddy and Mommy Pig have 1,000,000 ordinary shares outstanding. The book values of the net assets of Daddy Pig and Mommy Pig on the acquisition date were P4,500,000 and P9,000,000, respectively. The fair values of the net assets of both Daddy Pig and Mommy Pig approximated their book values on the acquisition date, except for one of Mommy Pig's depreciable asset having a remaining life of 5 years, which was understated by P500,000. Both securities are being held as long term investments. Your investigation revealed the following changes in Retained Earnings of Daddy Pig and Mommy Pig for 2016 and 2017 based on their respective audited financial statements: Daddy Pig Corp. Mommy Pig Inc. Retained earnings (Deficit), 1/1/16 P2,000,000 P350,000) Cash dividends, 2016 (250,000) Profit for 2016 400,000 650,000 Retained earnings, 12/31/16 P2,150,000 P300,000 Cash dividends, 2017 (300,000) (100,000) Profit for 2017 600,000 150,000 Retained Earnings, 12/31/17 P2,450,000 P250,000 Market values of shares: 12/31/16 P7.00 per share P12.00 per share Market values of shares: 12/31/17 6.50 per share 15.00 per share O P62,500 P162,500 P137,500 NoneCompute the direct materials used * 2 points On December 31, a fire damaged the finished goods of Francis Corporation. Financial records before the fire follow: January 1 December 31 Gross Profit 20% Purchase discounts P 80,000 Purchase returns and allowances 70.000 Freight-in (on account) 100,000 Purchases 3.000.000 Sales discounts 100,000 Sales 5,100,000 Finished goods P 400,000 ? Work in process 250.000 280,000 Direct materials 200,000 320,000 Accounts payable 555.000 250,000 Additional information: . Cost of goods out on consignment is P20,000, and finished goods damaged by fire can be sold at a salvage value of P10,000. . Direct labor is P900,000 and Factory overhead is P675,000. P2,830,000 O P2,630,000 O P2,880,000 O P2,870,000What is the carrying value of Tiffany's investment in Maricris shares as of 2 points December 31,2017 using the appropriate accounting standards?* On January 1, 2017, Tiffany Corporation acquired 30,000 shares of Maricris Corporations 100,000 shares outstanding for P5,000,000. The book value of Maricris identifiable net assets on this date was at P14,000,000. All its assets carrying amount approximated their fair values except for a depreciable assets with a remaining useful life of 5 years, which was undervalued on this date by P1,600,000. Maricris reported total comprehensive income in 2017 at P4,000,000 which was net of a foreign exchange loss reported in as other comprehensive loss at P800,000. Maricris also paid dividends at P1,500,000 at the end of the year, P500,000 of which is from pre-acquisition Retained Earnings. The FMV of shares on this date was at P210 per share. O P5,990,000 O P5,750,000 O P5,654,000 O P5,894,000