Problem 19

1-2.)
Balances prior to adjustment
Add: Goods in transit sold, FOB destination
Less: Unrecorded sale
Less: Unrecorded Purchase returns
Less: goods held on consignment
Add: unrecorded purchases
Add: goods in transit purchased, FOB shipping point
Add: goods out on consignment
Adjusted balances

3.) Adjusted balances, per ledger

Adjusted balances, physical count
Inventory shortage

Problem 20

ending
1-5.) inventory
Unadj. balances 550,000
679
680
681
682 Purch Over, COS over, NI under
EI over, Cos under, NI over - 46,740
683 EI over, Cos under, NI over - 4,500
684 Purch under, NI over
685 No,no,no
686 No,no,no
310 Yes,yes,yes
311 Sales over, NI over,
EI under, NI under (560x70%) 392
312 Sales over, NI over,
EI under, NI under (31940x70%) 22,358
313 Sales over, NI over,
EI under, NI under (6350x70%) 4,445
314 Sales over, NI over
315 No,no,no
316 No,no,no
 317 No,no,no
318
Net adjustment - 24,045
Adj. Balancs 525,955

Problem 21

1-5.) Ending Inv A/R A/P Sales

Unadj. Bal. 220,000 104,000 138,000 1,010,000
A - 20,000
B - 10,000 - 10,000
C 50,000 - 64,000 - 64,000
D 14,000 - 16,000 - 16,000
E - 24,000
Adjusted 250,000 24,000 108,000 930,000

Problem 22

1-6.) Ending Inv A/P A/R Net Sales

Unadj. Bal. 250,000 400,000 1,000,000 4,000,000
A
B 35,000
C 4,000 4,000
D - 25,000 40,000 40,000
E 10,000
F - 30,000 - 30,000
G 34,000 - 68,000 - 68,000
H - 10,000 - 10,000
I - 90,000
J 60,000 60,000
Adjusted 368,000 464,000 932,000 3,842,000

Problem 23

1-5.) R/E Sales

2020 Purchases under , CGS under
NI over, RE over 36,000
2021 Purchases over, CGS over
2020 EI under, NI under, RE under - 32,000
2021 BI under, CGS under
Sales under - 20,000
Purchases under, CGS under
 EI under, CGS over
Purchases under, CGS under
EI under, CGS over
Total 4,000 - 20,000

Problem 24

1.) Sales (475,000/80%) 593,750 100%

Less: COS 475,000 80%
Gross profit 118,750 20%

2-5.) Inventory (in units)

Beg. Bal (60k/3) 20,000 25,000 Bal. End (squeeze) or (125k/5)
Purchases 100,000 95,000 COS (475k/5)
120,000 120,000

Inventory (in peso amount)

Beg. Bal (squeeze 60,000 125,000 Bal. End (squeeze)
Purchases 540,000 475,000 COS
600,000 600,000

Weighted average unit cost = (600k/120k) = P 5 /unit

Problem 25
Remember:
1.) 2020
Weighted average 500,000 Ending Inventory
FIFO 600,000 Beg. Inventory
Understatement - 100,000
Since understated yung E.I. nung 2020 under the weighted average method, understated din yung Retained

The cumulative effect on change in accounting policy on Jan. 1, 2021 or

Dec. 31, 2020 Retained Earnings is understatement of 100,000, which is
the understatement of Ending inventory on Dec. 31, 2020.

2.) Net income - weighted average

Beg. Inv under, COS under,net income over
End. Inv under, COS over,net income under
Adjusted net income - FIFO
 3.) Computation of units sold:
Beg inv - units
Add: total purchases - units
TGAS - units
Less: units sold (6.4M / $80)
Ending inventory in units

The 30,000 ending inventory comes from the last two purchases as follows:
Units
From 4th quarter purchases 10,000
From 3rd quarter purchases 20,000
30,000

4.) Cost
NRV ((70-5)x30,000))
Loss on inventory write down

5.) Beginning inventory - FIFO

Add: Net purchases (6.480M - 980k)
TGAS
Less: End. Inv. At cost
COGS at COST
Add: Loss on inventory write down
COGS after inventory write down

Problem 26

1.) (10,000-1,000+3,000) = 12,000 units

No. of units Unit cost Total

3,000 14 42,000
2,000 13 26,000
4,000 15 60,000
3,000 16 48,000
12,000 176,000

2.) (4500+700+600) = 5,800 units

No. of units Unit cost Total

 1,800 19 34,200
1,800 20 36,000
1,200 21 25,200
1,000 22 22,000
5,800 117,400

3.) T-shirts:
Net realizable value NRV Cost
(12,000x(P16-(10%x16) 172,800 176,000

Jackets:
(5800x(22-(10%x22) 114,840 117,400
Lower of cost or NRV 287,640 293,400

4.) Total cost

Less: LCNRV
Loss on inventory writedown

5.) Beginning inventories:

T-shirts (9,000 x 11) 99,000
Jackets (5,000 x 15) 75,000
Add: Total purchases (299,500+183,900)
TGAS
Less: Merch inv at cost
COS before inv write down
Add: loss on inventory write down
COS after inv write down

T-shirts Jackets
4,000 12 48,000 900
3,000 12 36,000 1,100
2,500 13 32,500 1,500
3,500 14 49,000 2,000
2,000 13 26,000 1,800
4,000 15 60,000 1,200
3,000 16 48,000 1,000
22,000 299,500 9,500

Problem 27
 Ledger Physical
Balance count
314,800 293,600
3,200 3,200
- 8,400
- 6,000
- 8,800
3,640
1,600
14,800
307,240 304,400

307,240
304,400
2,840

sales purchases AP Net income

1,000,000 600,000 450,000 120,000

- 46,740 - 46,740 - 46,740

46,740
- 4,500
1,060 1,060 - 1,060

- 560 - 560
392
- 31,940 - 31,940
22,358
- 6,350 - 6,350
4,445
- 1,930 - 1,930
- 40,780 - 45,680 - 45,680 - 19,145
959,220 554,320 404,320 100,855

Net income
180,400
20,000

- 14,000
2,000
- 24,000
164,400

Net Purchases Net income

2,500,000 600,000

35,000
4,000
15,000
10,000
- 30,000
- 34,000
- 10,000
- 90,000
60,000
2,564,000 496,000

EI A/P CGS

36,000

- 32,000

- 24,000 - 24,000
 - 8,000 8,000
- 4,000 - 4,000
- 4,000 4,000
- 12,000 - 28,000 - 12,000

ze) or (125k/5)

COS Net income

nding Inventory Inverse Direct
eg. Inventory Direct Inverse

od, understated din yung Retained earnings.

3,250,000
- 150,000
100,000
3,200,000
 10,000
100,000
110,000
80,000
30,000

Unit cost Total Cost

68 680,000
66 1,320,000
2,000,000

2,000,000
1,950,000
50,000

600,000
5,500,000
6,100,000
2,000,000
4,100,000
50,000
4,150,000
Lower
172,800

114,840
287,640

293,400
287,640
5,760

174,000
483,400
657,400
293,400
364,000
5,760
369,760

16 14,400
18 19,800
19 28,500
19 38,000
20 36,000
21 25,200
22 22,000
183,900