1 On Oct.

1, 2021, Green Company consigned 40 freezers to Holden Company costing P14,000 each for sale at 20,000
and paid P16,000 in transportation costs

On Dec. 31, 2021, Holden cOmpany reported the sale of 10 freezers and remitted P170,000. The remittance was ne
15% commission. Consignment sales revenue for 2021?

10 FREEZERS SOLD 200,000.00 30,000.00

Cost of shipped inventory 560,000.00

Freight 16,000.00
Cost of consigned inventory? 576,000.00

2 Central WH
Beg inventory 1,100,000
Purchases 4,800,000
Freight in 100,000
Transportation to consignees
Freight out 300,000
Ending inventory 1,450,000
COGS

3 On Aug 1, Stella company recorded purchases of inventory of P800,00 and P1,000,000 under credit terms of 2/15, n

The payment due on P800,000 purchase was terminated on Aug 16. The payment on P1,000,000 was remitted on A

Under the net and gross method, These purchases should be included at what respective amounts in the determin
of goods available for sale?
NET
Purchases 1,800,000.00
Purchase discount (36,000.00)
1,764,000.00

Purchase discount forfeited 20,000.00

4 Lyka Company is preparing financial statements for the year ended Dec. 31, 2021.. Accounts payable amounted to
before any necessary year-end adjustment related to the following:
* On Dec. 31, 2021, Lyka has P50,000 debit balance in accounts payable to Reese, supplier, resulti
a P50,000 advance payment for goods to be manufactured
* Checks in amount of P100,000 were written to vendors and recorded on Dec. 20, 2021. The che
 mailed on January 5, 2022
* Goods shipped FOB shipping point on Dec, 20, 2021 were received and recorded by Lyka on Jan
Invoice cost was P45,000

What should be reported as accounts payable? 360,000 CREDIT BALANCE

Accounts payable - Vendor A 100,000 50,000 add
Cash in bank 100,000 100,000 add
Purchases 45,000 45,000 add
Accounts payable 45,000 555,000 Accounts payable

5 Raw mats, Beg 90,000 untis @ 7

Purchases 75,000 units @ 8
Purchases 120,000 units @ 8.5

Entity transferred 195,000 units of raw amts to wip during the year.

WIP, beg 50,000 units @ 14

Direct labor 3,100,000
Manufacturing OH 2,950,000
WIP, end 48,000 units @ 15

Under FIFO,
a Raw mats used?
b Total manufacturing cost
c Cost of goods manufactured

Units
6 Date Received Cost Issued On hand
1-Jan Purchase 200 8,000
8-Jan Issue 4,000 4,000
20-Jan Purchase 12,000 240 16,000

Moving average unt cost on Jan. 31?

7 At year-end, the company reported ending inventory at P3,000,000 and allowance for writedown before
any adjsutment was P150,000
PRODUCTS
1 2 3 4
Historical cost 800.00 1,000.00 700.00 500.00 3,000,000.00
Replacement cost 900 1,200 1,000 600
Sales Price 1,200 1,300 1,250 1,000
NRV 550 1,100 950 350
 Normal profit 250 150 300 300

550 1,000 700 350 2,600,000.00

3,000,000.00
400,000.00
Loss on inventory writedown that should be included in the COGS? 150,000.00
250,000.00
Loss on inventory writedown 250,000
Allow. For inventory writedown 250,000

8 Beg inventory 5,000,000.00

Purcahses 26,000,000.00
Freight in 2,000,000.00
Purchase returns and allowances (3,500,000.00)
Purchase discounts (1,500,000.00)
TGAS 28,000,000.00
COGS 22,200,000.00
ENDING INVENTORY 5,800,000.00
Physical count 4,000,000.00
Held on consignment 600,000.00 20.69%
Shortage 1,200,000.00

Sales 40,000,000.00
Sales returns (3,000,000.00)
NET SALES 37,000,000.00

Sales allowances 500,000.00

Sales discount 1,000,000.00

A physical inventory taken at year-end resulted in ending invenotry of P4,000,000

At year-end, unsold goods out on consignement with selling price of P1,000,000

are in the hands of the consignee

GPR on sales is 40%

a TGAS?
b COGS?
c Estimated cost of inventory shortage or overage?

Cost Retail
9 Beg inventory 735,000 1,015,000
Purcahses 4,165,000 5,775,000
Additional markup 210,000
TGAS - conservative 4,900,000 7,000,000 70.00%
-70,000
TGAS - averaga 4,900,000 6,930,000 70.71%
-5,530,000
Ending inventory at retail 1,400,000
Ending inventory at cost - conservartive 980,000
Ending inventory at cost - average 989,898.99
Ending inventory at cost - FIFO 985,798.82

Sales fpr the year amounted to P5,530,000 while markdowns at P70,000

Ending inventory using approximate lower of average cost or market is?

sting P14,000 each for sale at 20,000 each

ed P170,000. The remittance was net of

170,000.00

Held by consignees
120,000 1,220,000
600,000 5,400,000
100,000
50,000 50,000
80,000
200,000 -1,650,000
5,120,000

000,000 under credit terms of 2/15, n/30

ent on P1,000,000 was remitted on Aug. 31

respective amounts in the determination of cost

GROSS
1,800,000.00
(16,000.00)
1,784,000.00

21.. Accounts payable amounted to P360,000

nts payable to Reese, supplier, resulting from

REESE, A/P
recorded on Dec. 20, 2021. The checks were 50,000
eceived and recorded by Lyka on Jan 2, 2022.

DIT BALANCE Advances to supplier 50,000

Accounts payable 50,000

ounts payable

Units Weight. Ave Moving Average

Raw mats 630,000.00 90,000
Purchases 1,620,000.00 195,000.00
RM available for use 2,250,000.00 285,000 7.89
Ending Raw mats 765,000.00 90,000
Raw mats used 1,485,000.00 195,000 90,000 @ 7
Direct labor 3,100,000 75,000 @ 8
MOH 2,950,000 30,000 @8.5
Total manufacturing Cost 7,535,000.00
WIP, beg 700,000.00
Total cost placed in process 8,235,000.00
WIP, end (720,000.00)
COGM 7,515,000.00

Units Unit cost Total cost

jan.1 8,000 200 1,600,000.00
jan.8 -4,000 200 (800,000.00)
4,000 200 800,000
jan. 20 12,000 240 2,880,000.00
Ending inventory 16,000 230 3,680,000

ance for writedown before

LCNRV
Ending inventory
REQUIRED ALLOWANCE
Allow before adjustment - already recorded
 FIFO
COST RETAILS
4,165,000 5,915,000 70.41%