Solve exercise 7-4 and 7-6 only

Exercise 7-4: Palit-Palit Company, organized in 2018, is considering changing its inventory costing policy from FIFO costing method to average costing method. Profit under the FIFO costing method and inventory costs from 2018 to 2020 are shown below: 2018 2019 2020 Profit under FIFO method P1, 820, 000 P2, 540, 000 P3, 765, 000 Ending Inventory: FIFO Costing 620, 000 710, 000 1, 325, 000 Average method 600, 000 650, 000 1, 000, 000 Required:Average method. Determine the profit of Palit-Palit Company for years 2018 - 2020 had the company used the Exercise 7-5: On November 1, 2020, Big Ash Company signed a non-cancellable contract with General Milling Company to purchase 1, 000 sacks of rice at P2, 200 per sack with delivery to per sack. be made on February 28, 2021. On December 31, 2020, the price of rice had fallen to P2, 000 Required: Give the entries on December 31, 2020 and on February 28, 2021 when the market price of on February 28, 2021 is: (a) P1, 750 per sack and (b) P2, 400 per sack. Exercise 7-6: On September 30, 2020, a fire at Hottie Company's only warehouse caused a sever damage to its entire inventory. Based on recent history, Hottie has a gross profit of 30% based on cost. The following information is available from Hottie's records for the 9 months ended September 30, 2020: Inventory, January 1 - P550, 000; Net Purchases - P3, 000, 000; Net Sales - P3, 640, 000. A physical inventory disclosed usable damaged merchandise can be sold to a jobber for P60, 000. What is the amount of inventory loss from fire? Exercise 7-7: The inventory and purchases data of Costa Retalya Company for the last quarter of 2020 are as follows: Beginning Inventory: At cost - P650, 000; At retail - P1, 075, 000 Purchases during the period: At cost - P2, 450, 000; At retail - P3, 025, 000 Freight - In - P50, 000; Net markup - P400, 000; Net markdown - P300, 000 Net sales during the period - P3, 880, 000. Required: Compute the estimated cost of ending inventory and cost of goods sold using average cost method and FIFO method