Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Perpetual System
1. Purchases
Accounts payable
800,000
800,000
2. Accounts payable
Purchase returns
50,000
50,000
3. Accounts payable
Cash
4. Accounts receivable
Sales
1,580,000
5. Sales return
Accounts receivable
790,000
800,000
50,000
600,000
1. Merchandise inventory
800,000
Accounts payable
2. Accounts payable
50,000
Merchandise inventory
600,000
3. Accounts payable
Cash
1,580,000
4. Accounts receivable
Sales
1,580,000
40,000
40,000
600,000
600,000
1,580,000
Cost of sales
790,000
Merchandise inventory
6. Cash
1,360,000
5. Sales return
40,000
Accounts receivable
1,360,000
Accounts receivable
40,000
7. Inventory-Dec. 31
Income summary
20,000
(60 x 1,000)
60,000
60,000
Merchandise inventory
Cost of sales
20,000
6. Cash
1,360,000
Accounts receivable
7. Inventory shortage
10,000
Merchandise inventory
Shortage
1,360,000
10,000
70,000
Requirement b
Periodic System
Perpetual System
Inventory January
90,000
Cost of sales recorded
Purchases
800,000
(790,000 20,000)
Purchase returns
( 50,000) 750,000
Inventory shortage
Goods available for sale
840,000
Adjusted cost of sales
780,000
Less: Inventory December 31
60,000
Cost of sales
780,000
770,000
10,000
PROBLEM 3
Daydream Company began operations on January 1 with 10,000 units of
merchandise with unit cost of P80. Purchases for the year follow:
Lot No.
Units
Unit Cost
1
200
2
8000
3
6000
4
9500
5
14500
The physical inventory reveals 15,000 units on hand
100
110
120
100
90
on December 31.
Required:
Compute inventory cost on December 31 and cost of goods sold following
each method listed below:
1. FIFO-periodic
2. Weighted average- periodic
3. Specific Identification (assuming the inventory comes form Lot 3 6,000
units and Lot 4, 9,000 units)
Units
Total cost
1. FIFO - periodic
Lot No. 4
50,000
5
1,305,000
Unit cost
500
100
14,500
90
15,000
2. Beginning inventory
800,000
Purchases: Lot No. 1
200,000
880,000
720,000
950,000
1,355,000
10,000
80
2,000
100
8,000
110
6,000
120
9,500
100
14,500
90
5
1,305,000
Goods available for sale
50,000
15,000
4,855,000
97.10 1,456,500
3. Specific identification
Lot 3
4
6,000
9,000
15,000
FIFO
Weighted average
Specific identification
Goods available
4,855,000
4,855,000
4,855,000
120
100
Inventory-Dec. 31
1,355,000
1,456,500
1,620,000
720,000
900,000
1,620,000
Cost of sales
3,500,000
3,398,500
3,235,000
PROBLEM 4
The following information pertains to an inventory item of Emcee
Company for the month of December of the current year.
Units
1-Dec
7
12
17
22
Beginnin
g
Purchase
Sale
Purchase
Purchase
10000
30000
20000
60000
20000
Unit Cost
52
50
90
45
43
28 Sale
70000
90
Required:
Assuming the entity uses the periodic system, compute the December 31
inventory and cost of goods sold under:
1. FIFO
2. Weighted average
FIFO
December 17
450,000
22
Average method
December 1
520,000
7
17
22
Available for sale
Inventory (5,580,000/120,000)
10,000
20,000
30,000
45
43
860,000
1,310,000
10,000
52
30,000
60,000
50
45
860,000
5,580,000
20,000
120,000
30,000
43
46.50 1,395,000
FIFO
5,580,000
1,500,000
2,700,000
1,310,000
4,270,000
Average
1,395,000
4,185,000
PROBLEM 5
The records of Extreme Company showed the following:
Units
Unit Cost
Total Cost
Beginnin
1-Jan g
31 Sale
10000
5000
40 400,000.00
1-Apr Purchase
31-Jul Sale
1-Oct Purchase
15000
18000
25000
50 750,000.00
60
1,500,000.
00
1-Dec Sale
12000
Required:
Compute the cost of the ending inventory and cost of sales using:
1. FIFO- periodic
2. Weighted average
3. Moving average
Units
Total cost
Unit cost
FIFO
October 1
15,000
60
900,000
10,000
15,000
25,000
50,000
35,000
15,000
40
50
60
400,000
750,000
1,500,000
2,650,000
15,000
53
Units
795,000
Unit cost
Total
cost
Moving average perpetual
January 1
31
Balance
200,000
April 1
Total
950,000
July 31
Balance
95,000
October 1
Total
1,595,000
December 31
Balance
average
10,000
( 5,000)
5,000
40
40
15,000 50
20,000
(18,000)
2,000
25,000 60__
27,000
400,000
( 200,000)
40
750,000
47.50
47.50 ( 855,000)
47.50
1,500,000
59.07
(12,000)
59.07 ( 708,840)
15,000 59.07
886,160
FIFO
Weighted
Inventory January 1
Purchases
Goods available for sale
Less: Inventory December 31
Cost of sales
400,000
2,250,000
2,650,000
900,000
1,750,000
400,000
2,250,000
2,650,000
795,000
1,855,000
200,000
855,000
708,840
1,763,840
PROBLEM 6
The inventory records of Premiere Company showed the following data:
Units
Materials
R
S
T
Goods in
process
X
Y
Finished goods
A
B
Unit
Cost
NRV
1000
2000
3000
110
250
300
100
260
330
4000
5000
500
650
480
620
2000
2000
800
730
790
780
Required:
Determine the valuation of inventory following the measurement at
LCNRV.
Lower of
Units
value
Materials:
R
S
1,000
2,000
cost or NRV
100
250
Inventory
100,000
500,000
3,000
300
900,000
Goods in process:
X
Y
4,000
5,000
480
620
1,920,000
3,100,000
Finished goods:
A
B
2,000
2,000
790
730
1,580,000
1,460,000
9,560,000
PROBLEM 7
The inventory of HH Company at the end of the current year is to be
recorded at the lower of cost or net realizable value. Ending inventory
data per unit are summarized below:
Item
A
B
C
D
E
Units
Cost
Estimated sales price
1000
120
180
1500
110
140
1200
150
170
1800
140
190
1700
130
200
Cost of sell
30
20
30
30
40
Required:
Determine the inventory value applying the lower of cost or net realizable
value.
(Lower of cost or NRV)
Units
Unit cost
value
A
B
C
D
E
1,000
1,500
1,200
1,800
1,700
120
110
150
140
130
NRV
150
120
140
160
160
Inventory
120,000
165,000
168,000
252,000
221,000
926,000
PROBLEM 8
Landmark Company purchased a tract of unimproved land for P26,850,000. The land was
improved and subdivide into residential lots at a cost of P43,500,000. These lots were all of
the same size but owing to differences in location were offered for sale at different prices as
follows:
Number of
lots
Group
20 3,000,000.00
40 2,500,000.00
100 2,000,000.00
Group
1
2
3
5
4
3
Required:
Compute the cost of unsold lots at the end of the year.
Purchase price
Improving and subdividing cost
Total cost
26,850,000
43,500,000
70,350,000
Sales price
Group
1
(20 x 3,000,000)
40,200,000
2
(10 x 2,500,000)
16,750,000
3
(10 x 2,000,000)
13,400,000
Group
1
(40,200,000/20)
10,050,000
2
(16,750,000/10)
6,700,000
3
(13,400,000/10)
Fraction
Cost
60,000,000
60/105
25,000,000
25/105
20,000,000
20/105
105,000,000
70,350,000
Unsold
Cost
2,010,000
1,675,000
1,340,000
3
4,020,000
20,770,000