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BASIC ACCOUNTING
TUTORIAL
Hardaway Inc. had no beginning inventory and has 500 units on hand as of January 31.
Assuming the specific identification method is used and ending inventory consists of 100
units from the Jan. 10 purchase, 300 units from the Jan. 20 purchase, and 100 units from the
Jan. 30 purchase, cost of goods sold would be
a. P13,000
b. P4,000
c. P7,500
d. P5,000
BASIC ACCOUNTING TUTORIAL P2 5
Problem 10:
Hardaway Inc. purchased inventory as follows:
Hardaway Inc. had no beginning inventory and has 500 units on hand as of January 31.
Assuming the specific identification method is used and ending inventory consists of 100
units from the Jan. 10 purchase, 300 units from the Jan. 20 purchase, and 100 units from the
Jan. 30 purchase, cost of goods sold would be
a. P13,000
b. P4,000
c. P7,500
d. P5,000
BASIC ACCOUNTING TUTORIAL P2 6
Problem 10:
Hardaway Inc. purchased inventory as follows:
Hardaway Inc. had no beginning inventory and has 500 units on hand as of January 31.
Assuming the specific identification method is used and ending inventory consists of 100
units from the Jan. 10 purchase, 300 units from the Jan. 20 purchase, and 100 units from the
Jan. 30 purchase, ending inventory would be
a. P13,000
b. P4,000
c. P7,500
d. P5,000
BASIC ACCOUNTING TUTORIAL P2 7
Problem 10:
Hardaway Inc. purchased inventory as follows:
Hardaway Inc. had no beginning inventory and has 500 units on hand as of January 31.
Assuming the specific identification method is used and ending inventory consists of 100
units from the Jan. 10 purchase, 300 units from the Jan. 20 purchase, and 100 units from the
Jan. 30 purchase, ending inventory would be
a. P13,000
b. P4,000
c. P7,500
d. P5,000
BASIC ACCOUNTING TUTORIAL P2 8
MERCHANDISING
• Buy and sell of goods or inventories
Payment of Payment of Sale of
Buy goods Collection
goods related services goods
• Accounting elements:
1) Asset, 2) Liability, 3) Equity,
4) Income/ Sales, 5) Costs, 6) Operating Expense
• Inventory System: Periodic and Perpetual System
• Sales Discount, Sales Return, Sales Allowance, Net Sales
• Cost of Goods Sold or Cost of Sales
• Purchase Discount, Purchase Returns and Allowances
On June 11, 2018, the company paid a charge purchase with invoice price of P41,000.
The supplier’s charge sales invoice was dated May 29, 2018, terms 5/15 n/60.
Entry: Accounts Payable – Trade 41,000
Purchase Discount 2,050
Cash 38,950
1. What are the number of units and cost of goods available for sale at December 31, 2019?
a. 10 units; P 1,730
b. 20 units; P 1,770
c. 30 units; P 1,770
d. 30 units; P 1,730
1. What are the number of units and cost of goods available for sale at December 31, 2019?
a. 10 units; P 1,730
b. 20 units; P 1,770
c. 30 units; P 1,770
d. 30 units; P 1,730
2. Assuming the FIFO periodic cost flow assumption, what will be the company’s cost of goods sold
for the 120 items sold in 2019?
a. P 1,380
b. P 1,386
c. P 1,410
d. P 1,460
2. Assuming the FIFO periodic cost flow assumption, what will be the company’s cost of goods sold
for the 120 items sold in 2019?
a. P 1,380
b. P 1,386
c. P 1,410
d. P 1,460
3. Assuming the periodic weighted-average cost flow assumption, what will be the company’s cost of
goods sold for the 120 items sold in 2019?
a. P 1,386
b. P 1,410
c. P 1,416
d. P 1,460
3. Assuming the periodic weighted-average cost flow assumption, what will be the company’s cost of
goods sold for the 120 items sold in 2019?
a. P 1,386
b. P 1,410
c. P 1,416
d. P 1,460
4. Assuming the perpetual moving-average cost flow assumption, what will be the company’s cost of
goods sold for the 120 items sold in 2019?
a. P 1,386
b. P 1,410
c. P 1,416
d. P 1,460