ABC Logistics

ABC Logistics has incurred a total cost of P85,000 for their shipping activities from January 5 to January
8, 201C. The data relevant to the said shipment are the following:

Date Quantity in quintal Distance in km

January 5, 201C 50 180

January 6, 201C 35 85

January 7, 201C 20 260

January 8, 201C 40 100

Requirements: (2 items x 10 points)

A. Total quintal-km

B. Cost associated per quintal-km

Solution:

A. Total quintal-km
Date Quantity in quintal Distance in km
January 5, 201C 50 180
January 6, 201C 35 85
January 7, 201C 20 260
January 8, 201C 40 100
625 quintal- km
B. Cost associated per quintal-km
total cost
Cost associated per quintal-km=
total quintal−km
85,000
=
625
= 136 per quintal-km
Mendez Shoes

The average cost of Mendez shoes is P1,000. Relevant to this, the company incurs P500 in producing
their shoes on a per unit basis. The total sales of the company in June 201D are P2,400,000 with a
beginning inventory of P1,100,000 and additional purchases amounting to P1,900,000.

Requirements: (4 items x 10 points)

A. Goods available for sale

B. Product cost percentage

C. Sales cost

D. Cost of ending inventory

Solution:

A. Goods available for sale

Goods available for sale= Beginning inventory + Additional purchases

= 1,100,000 + 1,900,000

= 3,000,000

B. Product cost percentage

cost incurred per unit

Product cost percentage= ×100
selling price
500
= ×100
1,000

= 0.5 × 100

= 50%
C. Sales cost
Sales cost = Total amount of sales × product cost percentage
= 2,400,000×50%
= 1,200,000

D. Cost of ending inventory

Cost of ending inventory= Goods available for sale – sales cost
= 3,000,000 – 1,200,000
= 1,800,000