CHAPTER 7 ACTIVITY/ASSIGNMENT

1. Entity A, a government entity, is a wholesaler of Product A, a non-unique good.

The activity for Product A during July is shown below:
Balance/
Date Transaction Units Cost
July 1 Inventory 2,000 ₱36.00
7 Purchase 3,000 37.00
12 Sales 3,600
21 Purchase 5,000 37.88
22 Sales 3,800
29 Purchase 1,600 38.11
How much is the ending inventory on July 31?

Ans. 158,736
Solution:

Date Transaction Units Cost Total cost

July 1 Inventory 2,000 ₱36.00 72,000
7 Purchase 3,000 37.00 111,000
Total 5,000 36.60 183,000
12 Sales (3,600) 36.30 (131,760)
21 Purchase 5,000 37.88 189,400
Total 6,400 37.60 240,640
22 Sales (3,800) 37.60 (142,880)
29 Purchase 1,600 38.11 60,976
Ending Inventory 4,200 158,736