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Sol. Man. - Chapter 8 - Inventory Estimation - Ia Part 1a
Sol. Man. - Chapter 8 - Inventory Estimation - Ia Part 1a
Inventory Estimation
1. Solutions:
a) 200,000 – (160,000 x 100%/150%) = 93,333
b) 200,000 – (160,000 x 40%) = 136,000
c) 200,000 – (160,000 x 100%/125%) = 72,000
d) 200,000 – (160,000 x 60%) = 104,000
2. Solution:
2001
Net sales (788,000 - 16,000) 772,000
Cost of sales:
Inventory, beg. (Jan. 1, 2001) -
Purchases 860,000
Purchase returns & allow. (46,120)
1
GPR on sales - 2002 20%
Inventory - 2002
beg. 173,120
Net purchases COGS
(692K - 64.6K) 627,400 652,800 [(836K - 20K) x 80%]
147,720 end.
3. Solutions:
Cost Retail
Inventory at January 1, 2002 45,000 75,000
Purchases 270,000 590,000
Freight-in 6,750
Markups 50,000
Markdowns (20,000)
TGAS 321,750 695,000
Net sales * (612,000)
Ending inventory at retail 83,000
*Sales 600,000
Estimated normal shrinkage 12,000
Net sales 612,000
2
COGS = (321,750 – 38,420.70) = 283,329.30
PROBLEM 3: EXERCISES
1. Solution:
Inventory, January 1 ...................... ₱ 62,000
Purchases (₱114,000 - ₱4,000) ............. 110,000
Cost of goods available for sale .......... ₱172,000
Sales ..................................... ₱90,000
Gross profit (₱90,000 _ 40%) .............. 36,000
Estimated cost of goods sold .............. (54,000)
Estimated inventory, May 17 ............... ₱118,000
Actual inventory, May 17 .................. (55,000)
Theft loss ................................ ₱ 63,000
2. Solutions:
(1)
(2)
3
PROBLEM 4: CLASSROOM ACTIVITY
Solution:
Inventory
Jan. 1, 20x1 1,064,352
Purchases 482,016 630,644 COGS*
915,724 Jan. 7, 20x1
4
PROBLEM 5: MULTIPLE CHOICE
1. C
2. C
3. A
4. C
5. A
Solution:
Accounts payable Inventory
- beg. beg. 30,000
Payments Net Net
to suppliers 80,000 90,000 purchases purchases 90,000 120,000 COGS
end. 10,000 - end.
6. A
Solution:
Accounts payable
- beg.
Disbursements 290,000 315,000 Purchases (squeeze)
end. 25,000
Inventory
beg. 10,000
Purchases 315,000 325,000 COGS (squeeze)
- end.
7. B
Solution: Raw materials
beg. 11,000
Purchases 150,000 146,000 DM
15,000 end.
WIP
beg. 20,000
Direct materials 146,000
Direct labor 60,000
Factory overhead:
Indirect factory labor 30,000
Taxes and depn. - factory bldg. 10,000
Utilities (60% x 25,000) 15,000 257,000 COGM
24,000 end.
5
Finished goods
beg. 12,500
COGM 257,000 260,500 COGS
9,000 end.
8. D
Solution:
Raw materials
beg. -
Purchases 215,000 207,500 DM (squeeze)
7,500 end.
WIP
beg. -
DM 207,500
DL 100,000
FOH 150,000 457,500 COGM (squeeze)
- end.
Finished goods
beg. 17,500
COGM 457,500 475,000 COGS (squeeze)
- end.
9. B