Cost Retail

Beginning inventory 1,300,000 2,600,000

Purchases 18,000,000 29,200,000
Frieght in 400,000 -
Purchase returns (600,000) (1,000,000)
Purchase allowances (300,000) -
Departmental T-in 400,000 600,000
Net mark ups - 600,000
Net mark down - (2,000,000)
TGAS 19,200,000 30,000,000

CTR:
Average = 64.00%

FiFo = 65.33%

Conventional = 60.00%

TGAS at retail 30,000,000

Less: cost of sales
Sales 24,700,000
Sales return (350,000)
Employee discount 600,000
Normal loss 50,000 25,000,000
Ending inventory at retail 5,000,000

Ending inventory at cost (WA) 3,200,000

Ending inventory at cost (FiFo) 3,266,500
Ending inventory at cost (Conventional) 3,000,000

Cost Retail
Beginning inventory 1,400,000 2,500,000
Purchases 3,600,000 4,800,000
Frieght in 200,000 -
Abnormal losses (50,000) (70,000)
Departmental T- out (150,000) (320,000)
Net mark ups 180,000
Net mark down (90,000)
TGAS 5,000,000 7,000,000

CTR:
FiFo = 80.00%

TGAS at retail 7,000,000

Less: cost of sales
Sales 4,000,000
Employee discount 100,000
Sales return (50,000) 4,050,000
Ending inventory at retail 2,950,000

Ending inventory at cost 2,360,000

TGAS at cost 5,000,000

Less: Ending inventory at cost (2,360,000)
Estimated cost of sales 2,640,000
 Cost NRV LCNRV
Products 1 25 34 25
Products 2 42 36 36
Products 3 120 165 120
LCNRV of ending inventories

Cost of ending inventory

LCNRV of ending inventories
Allowance for IWD, ending

Assuming a beginning balance of P5,000

Allowance for IWD, beginning
Loss on IWD
Allowance for IWD, ending
Units Cost
Beginning inve 70,000 420,000
Purchases 150,000 1,110,000
TGAS 220,000 1,530,000
Less: Sales (125,000) (777,500)
Ending invento 95,000 752,500
Using FiFo:
90,000 unit x 8 720,000
5,000 units x 6.50 32,500
Ending inventory 752,500

Computation of NRV:
Selling price (12 x 75%) 9.00
Less: Cost to sell (9 x 15%) (1.35)
NRV per unit 7.65
Multiplied by units of EI 95,000
NRV of ending inventory 726,750

Ending inventory at cost 752,500

NRV of ending inventory (726,750)
Allowance,end 25,750
Allowance,beg -
Loss on inventory WD 25,750
PROBLEM 1
Fair value 600,000
Transaction cost (5%) 30,000
Total FV + TC 630,000

FV 12/31/2021 (15,000 x 50) 750,000

Less: FV 1/1/2021 (600,000)
UGOL - PL 150,000

FV 12/31/2021 (15,000 x 50) 750,000

Less: FV + TC 1/1/2021 (630,000)
UGOL - OCI 120,000
l
FV 12/31/2021 (15,000 x 50) 750,000
Less: Initial FV + TC (630,000)
Cumulative UGOL - OCI 120,000

FV 12/31/2022 (15,000 x 52) 780,000

Less: FV 12/31/2021 (750,000)
UGOL - PL 30,000

FV 12/31/2022 (15,000 x 52) 780,000

Less: FV 12/31/2021 (750,000)
UGOL - OCI 30,000

FV 12/31/2022 (15,000 x 52) 780,000

Less: Initial FV + TC (630,000)
Cumulative UGOL - OCI 150,000

Net selling price (15,000 x 6 930,000

Less: Previous FV of EI sold
(15,000 x 52) (780,000)
Gain on sale 150,000

PROBLEM 2
Initial value of EI at FVTOC 7,500,000
Less: UGOL - OCI 12/31/22 (300,000)
FV 12/31/2022 7,200,000
Add: FV of EI at FVTPL 2,000,000
Total FV as of 12.31.2022 9,200,000

FV of EI at FVTOCI as of 12 7,250,000
Initial value of EI at FVTOC (7,500,000)
Cumulative UGOL - OCI as (250,000)
PROBLEM 3
Total cash paid (30,000 x 42 1,275,000
Less: Dividend - on (30,000 (75,000)
Initial value of EI at FVTOCI 1,200,000

UGOL - OCI in 2022:

FV 12/31/2022 (30,000 x 38. 1,155,000
FV + TC on 6/2/22 (1,200,000)
UGOL - OCI in 2022 (45,000)
Add: Dividend income (30,00 105,000
Total in comprehensive inc 60,000

PROBLEM 4
Total cash paid (10,000 x 50 500,000
Less: Transaction cost (10,0 (100,000)
Less: Dividend - on (50,000)
Initial value of EI at FVTPL 350,000

PROBLEM 5 Mar. July Oct

Security X: 40,000 50,000 50,000
2.50 1.50 3.00
100,000 75,000 150,000

Total dividend income for X 325,000

Security Y: Mar. July Oct

50,000 50,000 65,000
3.00 2.00 2.00
150,000 100,000 130,000

Total dividend income for Y 380,000

Total dividend income for X 325,000
Total investment income 705,000

Security. X(FVTPL) 50,000 x 30 1,500,000

Security Y (FVTOCI) 65,000 x 27 1,755,000
Total FV of EI as of 12/31/2023 3,255,000

PROBLEM 6
Note: Shares were receivede in lieu of cash dividends
Note: Dividend is equals to the FV of shares received

Cash dividend receivable (10,000 x 10) 100,000

Dividend income

EI at FVTPL (2,000 x 60) 120,000

 Cash dividend receivable
Dividend income

Total dividend income

PROBLEM 7
Net selling price 1,200,000
less: Previous FV of EI sold (950,000)
Gain on sale 250,000

Presumed FV 7/1/24 1,200,000

Less: Initial FV + TC (900K+100K) (1,000,000)
Cumulative UGOL - OCI 200,000
Multiplied by % of EI sold 100%
Amount of transfer to RE 200,000
 Units LCNRV
1,000 25,000
2,000 72,000
3,000 360,000
457,000

469,000
(457,000)
12,000

5,000
7,000
12,000

NRV of BI:
12 x 85% x 70,000
714,000
100,000
100,000
20,000

120,000