The following information were obtained from Company As accounting records: Sales for the 11 months ended November 30 P 3,400,000 Sales for the year ended December 31 3,840,000 Purchases for 11 months ended November 30 2,700,000 Purchases for year ended December 31 3,200,000 Inventory, January 1 350,000 Inventory, November 30 (per physical count) 380,000 Additionally, the following were noted: Shipments received in unsalable condition and excluded from physical inventory: Total at November 30 4,000 Total at December 31 (incl. Nov. 30 Unrecorded returns) 6,000 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. 8,000 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. 22,000 Shipments received in November and included in the physical count at November 30 but recorded as December purchases. 30,000 Due to the carelessness of the receiving department, a December shipment was damaged by rain. These goods were later sold at cost in December. 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: Beginning inventory Cost P 500,000 Selling price 770,000 Purchases: Cost 3,070,000 Selling price 4,300,000 Transportation in 70,000 Purchase discount 45,000 Purchase return: Cost 25,000 Selling price 40,000 Sales return 80,000 Sales discount 20,000 Markup 100,000 Markdown 350,000 Cancelation of markup 30,000 Cancelation of markdown 10,000 Sales 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: Carrying amount on January 1 P 5,000,000 Increase due to purchases 2,000,000 Gain arising from change in fair value less cost of disposal attributable to price change 400,000 Gain arising from change in fair value less cost of disposal attributable to physical change 600,000 Decrease due to sales 850,000 Decrease due to harvest 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 Dec 31 New born animal 70 72 6-month old animal 80 2 y/o animal 100 105 2.5 y/o animal 108 111 3 y/o animal 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