Problem 1

Purchase price in S$ 100,000.00

Exchange rate on date of purchase 34.00 *Foreign exchange differences after the date of purchase is e
Purchase prince in peso 3,400,000.00
Import duties 500,000.00
Transport charges 300,000.00
Total cost of inventory 4,200,000.00

Problem 2
Purchase price 100,000.00 *FOB destination hence, it is the seller not the buyer who sho

Problem 3
Inventory on hand less merchandise
held on consignment 180,000.00
Merchandise in transit plus freight cost 160,000.00 *FOB shipping point hence, freight cost is payable and invent
Merchandise in transit less delivery cost
allongside plus cost of shipping 247,000.00 *FAS hence, seller pays for deliver cost alongside and buyer p
Merchandise in transit plus insurance
cost and freight 183,000.00 *CIF hence, buyer pays for cost, insurance and freight
770,000.00 *Inventory purchased with buyback agreement is still the inv

Problem 4
Cost per unit 15,000.00
Freight per unit (20,000/50) 400.00
Total cost per unit 15,400.00
No. of units on consignment 15.00
Inventory on consignment 231,000.00

Total cost per unit 15,400.00

No. of units sold 25.00
COGS 385,000.00

Sales 500,000.00
COGS (385,000.00)
GP 115,000.00
Cost paid in the return of 10 units (4,000.00)
Commission (500,000*.15) (75,000.00)
Transportation cost previously
capitalized on the 10 units
returned (4,000.00)
Net income 32,000.00

Problem 5
a) 2,348,900.00
b) 134,200.00
c) No effect on Inventory -
d) No effect on Inventory -
e) 85,400.00
f) (104,380.00)
g) (105,200.00)
h) 15,000.00
2,373,920.00

Problem 6
947,800.00
a) No effect on Inventory -
b) No effect on Inventory -
c) Invoice less freight charge divided by 1.4 12,500.00
d) Invoice price plus freight cost 51,000.00
e) Sales price divided by 1.4 plus shipping cost 28,000.00
1,039,300.00

Problem 7

Dec. 29 purchase - 8,000 units @ P46 each 368,000.00

Dec. 27 purchase - 5,000 units @ P45 each 225,000.00
Dec. 22 purchase - 3,000 units @ 44 132,000.00
Cost of inventory - FIFO 725,000.00

Problem 8

January 30 purchase - 14,000 @ P15 each 210,000.00

January 20 purchases - 6,000 @ P12 each 72,000.00
Cost of inventory - FIFO 282,000.00

Problem 8
Unit Unit Cost Total Cost
January 1 Balance 20,000.00 10.00 200,000.00
January 15 sales (15,000.00) 10.00 (150,000.00)
5,000.00 10.00 50,000.00
January 18 purchase 20,000.00 11.00 220,000.00
January 20 purchase 15,000.00 12.00 180,000.00
40,000.00 11.25 450,000.00
January 25 sales (24,000.00) 11.25 (270,000.00)
16,000.00 11.25 180,000.00
January 30 purchase 14,000.00 15.00 210,000.00
30,000.00 13.00 390,000.00
January 31 sales (10,000.00) 13.00 (130,000.00)
20,000.00 260,000.00
Problem 9
Inventory at 01/01/18 550,000.00
Purchases 3,000,000.00
Freight 60,000.00
Credit memo (200,000.00)
Discount (80,000.00)
Sales recorded at cost (2,520,000.00)
Unrecorded sales at cost (210,000.00)
Sales returns at cost 112,000.00
Cost of inventory destroyed by fire 712,000.00 *Materials in transit, FOB shipping point, not included in fire

Cost of inventory destroyed by fire 712,000.00

Salvage value of usable damaged goods (50,000.00)
Fire loss 662,000.00

Problem 10
Unit Unit Cost Total Cost
December 1 inventory 350.00 820.00 287,000.00
December 1 inventory 43.00 850.00 36,550.00
393.00 823.00 323,550.00
December 2 sale (300.00) 823.00 (246,900.00)
December 3 sale return 5.00 823.00 4,115.00
98.00 824.00 80,765.00
December 9 purchase 55.00 910.00 50,050.00
December 13 purchase 76.00 960.00 72,960.00
229.00 890.00 203,775.00
December 15 sale (86.00) 890.00 (76,540.00)
143.00 890.00 127,235.00
December 16 purchase return (1.00) 910.00 (910.00)
142.00 890.00 126,325.00
December 22 sale (60.00) 890.00 (53,400.00)
82.00 890.00 72,925.00
December 26 purchase 72.00 980.00 70,560.00
154.00 932.00 143,485.00

Cost of Goods Sold (372,725.00)

Problem 11

Cost 268,000.00

Selliing price 300,000.00

Production costs to complete (20,000.00)
Transport costs to customer (5,000.00)
Future selling costs (10,000.00)
Net realizable value 265,000.00 LCNRV

Problem 12

Opening inventory 5,000,000.00

Purchases 20,000,000.00
Transportation and other costs 500,000.00
TGAS 25,500,000.00

LNRV Cost 2,000,000 NRV 1,200,000 1,200,000.00

Item A LNRV Cost 800,000 NRV 1,000,000 800,000.00
Closing inventory - remainder
(7M-1.2M-500k) 4,500,000.00
Ending inventory @ LCNRV 6,500,000.00

Cost of sales 19,000,000.00

Problem 13
Allowance to Reduce Inventory Writedown 16,000.00
Recovery of Inventory Loss 16,000.00

Problem 14

Purchase price plus taxes

A 10,000,000.00 0.12 58,800,000.00
B 16,000,000.00 0.19 58,800,000.00
C 28,000,000.00 0.33 58,800,000.00
D 30,000,000.00 0.36 58,800,000.00
84,000,000.00

Problem 15
Item LCNRV
A 87.00
B 85.00
C 111.00
D 194.00
477.00
1,000.00
LCNRV 477,000.00
Cost 502,000.00
Required allowance 25,000.00
Balance 33,000.00
Gain on reversal of inventory write-down 8,000.00

Problem 16
Fixed price 8,000,000.00
Actual price on December 31, 2017 (7,000,000.00)
Loss on December 31, 2017 1,000,000.00

Question 1
Actual price on December 31, 2017 7,000,000.00
Actual price on March 15, 2018 (6,400,000.00)
Additional loss, March 15, 2018 600,000.00

Question 2
Actual price on December 31, 2017 7,000,000.00
Actual price on March 15, 2018 (8,400,000.00)
Gain, March 15, 2018 (1,400,000.00)
Maximum gain allowed 1,000,000.00

Problem 17
Minimum purchase for the next two years 200,000.00
Cost, net of scrap value (P10-P2) 8.00
Probable loss 1,600,000.00

*Probable loss pertain to loss in the next two years

Problem 18
Inventory, January 1, 2018 1,000,000.00
Purchases 800,000.00
Freight 20,000.00
TGAS 1,820,000.00
Sales at cost (1,540,000.00)
Credit memo for merchandise returned at cost 35,000.00
Inventory, December 31, 2018 315,000.00
Inventory per count (160,000.00)
Shortage 155,000.00

*Ignore in the computation credit memo for which merchandise is yet to be returned and sales discount

Problem 19
Cost Retail
Beginning inventory 340,000.00 640,000.00
Purchases 4,500,000.00 7,300,000.00
Freight in 100,000.00
Purchase returns (150,000.00) (250,000.00)
Purchase allowance (90,000.00)
Departmental transfer-in debit 100,000.00 160,000.00
Net markup 150,000.00
GAS - conventional 4,800,000.00 8,000,000.00
Conventional Cost ratio =
0.6
Net markdown (500,000.00)
GAS - average 4,800,000.00 7,500,000.00
Average cost ratio
0.64
Sales (6,600,000.00)
Sales returns 150,000.00
Employee discount (100,000.00)
Spoilage and breakage (200,000.00)
Ending inventory at retail 750,000.00

Conventional Ending inventory at cost 450,000.00

Average Ending inventory at cost 480,000.00

Problem 20
Cost Market
Inventory beginning 600,000.00 1,500,000.00
Purchases 3,048,400.00 5,500,000.00
Freight in 80,000.00
Purchase returns (140,000.00) (180,000.00)
Mark-ups 600,000.00
Mark-up cancellation (100,000.00)
Mark-downs (1,300,000.00)
Mark-down cancellation 300,000.00
TGAS, excluding Inventory beginning 2,988,400.00 4,820,000.00
Cost ratio =
0.62
TGAS, including Inventory beginning 2,988,400.00 6,320,000.00
Sales (4,470,000.00)
Sales returns 150,000.00
Employee discounts (400,000.00)
Ending inventory at retail 1,600,000.00
0.62
Ending inventory at cost 992,000.00
fter the date of purchase is excluded from inventory (See Valix discussion)

seller not the buyer who should pay for the packaging, shipping and special handling charges.

ht cost is payable and inventoriable by the buyer

er cost alongside and buyer pays for cost of shipping

nsurance and freight

ack agreement is still the inventory of the seller
ng point, not included in fire
Allocation Clearing cost Allocate purchase and improvement cost
7000000 - 7,000,000.00
11200000 1,000,000.00 12,200,000.00
19600000 3,000,000.00 22,600,000.00
21000000 8,000,000.00 29,000,000.00