Copy of SOL. MAN. Chapter 7 Inventories IA PART 1A 2020 Edition PDF

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Chapter 7InventoriesPROBLEM 1: TRUE OR FALSE1 – i., finished goods, work in process, and raw materials& supplies23 – consignor4 – e., increase in inventory resulting from cashpurchases56 (₱3 + ₱4 = ₱ 7 )7 ( ₱ 2 – the cost of the red apple)8 (2 + 3 + 4) / 3 apples x 2 apples on hand = ₱ 6910PROBL...

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Chapter 7 Inventories PROBLEM 1: TRUE OR FALSE 1. TRUE–i . e . , fini s he dgoods , wor ki npr oc es s , andr a w ma t er i al s &s uppl i e s 2. F ALSE 3. F ALSE–c ons i gnor 4. F ALSE–e . g. ,i nc r e as ei ni nve nt or yr e s ul t i ngf r om c as h pur c has e s 5. TRUE 6. F ALSE( ₱3+₱4=₱7) 7. F ALSE( ₱2–t hec os toft her e da ppl e) 8. F ALSE( 2+3+4)/3appl esx2appl e sonhand=₱6 9. TRUE 10.TRUE PROBLEM 2: MULTIPLE CHOICE – THEORY 1. D -As s e t sus e di npr oduc i nggoods( e . g. ,f ac t or ye qui pme nt ) ori nr e nde r i ng s e r vi c e s( e . g. ,de nt alc hai r )ar ec l as s i fied as PPE. 2. D 3. B 4. A 5. C–me moe nt r y 6. A 7. C 8. A 9. D 10.D 11.D 12.D 13.A 14.A 15.C 16.A 17.A 18.C

Page|2 19.C 20.D

PROBLEM 3: EXERCISES 1. So l ut i o ns : Re qui r e me nt( a) :FOBs hi ppi ngpoi nt ,Fr e i ghtc ol l e c t De c . 31 , Pur c ha s e s 1 00, 0 00 2 0 x1 Ac c ount spa yabl e J a n.2 , F r e i ght i n 1 0, 0 00 2 0 x2 Ca s h J a n.5 , Ac 1 00, 0 00 c ount spa yabl e 2 0 x2 Ca s h Re qui r e me nt( b) :FOBde s t i nat i on, Fr e i ghtpr e pai d De c . 31 , Noe nt r y 2 0 x1 J a n.2 , 2 0 x2 J a n.5 , 2 0 x2

1 00, 0 00 1 0, 0 00 1 00, 0 00

-

Pur c has e s Ac c ount spa yabl e Ac c ount spa ya bl e Ca s h

1 00, 0 00 1 00, 0 00 1 00, 0 00 1 00, 0 00

Re qui r e me nt( c ) :FOBs hi ppi ngpoi nt ,f r e i ghtpr e pai d De c . 31 , Pur 1 00, 0 00 c has e s 2 0 x1 Fr e i ght i n 1 0, 0 00 Ac c ount spa yabl e 1 10, 0 00 J a n.2 , Noe nt r y 2 0 x2 J a n.5 , Ac 1 10, 0 00 c ount spa ya bl e 2 0 x2 Ca s h 1 10, 0 00 Re qui r e me nt( d) :FOBde s t i nat i on,Fr e i ghtc ol l e c t De c .3 1 , Noe nt r y

-

2 0 x1 J a n.2 , 2 0 x2 J a n.5 , 2 0 x2

Pur c has e s Ac c ount spa yabl e Cas h Ac c ount spa ya bl e Cas h

1 00, 0 00 9 0, 0 00 1 0, 0 00 9 0, 0 00 9 0, 0 00

Page|3

2. So l ut i o n: Per pet uals ys t em Per i odi cs ys t em ( a) I nvent or y 54, 000 Pur c has es 50, 000 Ac c ount spa yabl e 50, 000 Fr ei ght i n 4, 00 0 Cas h 4, 000 Ac c ount spa yabl e 50, 000 Cas h 4, 000 ( b) Ac c ount spa yabl e 5, 000 Ac c ount spa yabl e5 , 000 I nvent or y 5, 000 Pur c has er et ur ns 5, 000 ( c ) Ac c ount sr e c e i vabl e90, 000 Ac c ount sr e c e i vabl e90, 000 Sal e s 90, 000 Sal e s 90, 000 Cos tofgoodss ol d 30, 000 I nvent or y 3 0, 000

Noent r y

( d) Sal e sr e t ur ns 6, 000 Sal e sr e t ur ns 6, 000 Ac c ount sr e c e i vabl e 6, 0 00 Ac c ount sr e c e i vabl e6, 000 I nvent or y 2, 00 0 Cos tofgoodss ol d 2, 000

Noent r y

3. So l ut i o n: Nat ur eofe r r or a . Ove r s t a t e me ntofbe gi nni ng i nve nt or y b. Under s t a t e me ntofpur c has e s c . Ove r s t a t e me ntofpur c has er e t ur ns d. Under s t a t e me ntofpur c ha s e r e t ur ns e . Ove r s t a t e me ntofe ndi ngi nve nt or y f . Under s t a t e me ntofe ndi ng

Effe c tofe r r oron: Gr os s pr ofit COGS Under Ove r Ove r Under Ove r Under

Over Under Under Over Under Over

Page|4 i nve nt or y

4. So l ut i o n: Gr os smet hod Ne tme t hod Pur c ha s eo fi nv e nt o r y Pur c ha s e s 9 0, 0 00 Pur c has e s 8 8, 2 00 Ac c ount spa yabl e 9 0, 0 00 Ac c ount spa yabl e 8 8, 20 0 ( i )Pa yme nti sma dewi t h i ndi s c o untpe r i o d Ac c ount spa ya bl e 88 , 20 0 Ac c ount spa yabl e 9 0, 0 00 Pur c has edi s c ount s 1 , 80 0 Ca s h 8 8, 2 00 Cas h 8 8, 2 00 ( i i )Pa yme nti sma deb e y o nddi s c o untpe r i o d . Ac c ount spa yabl e 90 , 00 0 Ac c ount spa ya bl e 88 , 200 Ca s h 90 , 00 0 Pur c has edi s c ountl os t1 , 80 0 Cas h 9 0, 0 00

5. So l ut i o n: I nve nt or y, be g .

Ne t pur c has e s

Cos tof s al e s

I nve nt or y,e nd.

a .

1 0, 0 00

19 8, 0 00

1 12, 0 00

b.

3 6, 0 00

1 45, 0 00

1 25 , 00 0

9 6, 0 00 56, 0 00

c . d .

1 5, 00 0

5 8, 0 00

64 , 00 0

9, 00 0

2 5, 2 00

11 2, 0 00

89 , 200

4 8 , 00 0

PROBLEM 4: MULTIPLE CHOICE – COMPUTATIONAL 1 . B So l ut i o n: Unadj us t e dbal anc e 260, 000 ( a) 11, 000 ( b) 5, 00 0 ( c ) ( 16, 000) ( d) 20, 00 0 ( e ) ( 4, 000)

Page|5

Cor r e c ti nve nt or y 2 .





276, 000

C–t heamountbas e dont hephys i c alc ount .Noadj us t me nti s nec e s s ar y: Thegoodsar epr oper l yi nc l udedi ni nve nt or ybec aus et he y we r es hi ppe donl yonJ ul y10,200 2,af t e rt heJ une30, 2002c ut offda t e . Thegoodspur c has e dFOBde s t i na t i onar epr ope r l ye xc l ude d.

D So l ut i o n: 3 .

War e hous e

Cons i g ne d g oods

Be gi nni ngi nve nt or y

1 10, 0 00

Pur c has e s

4 80, 0 00

12 , 00 0 60 , 00 0

Fr e i ghti n

1 0, 0 00

Tr ans po.t oc ons i gne e s

5 , 00 0 6 00, 0 00

7 7, 0 00

Endi ngi nve nt or y

( 1 45, 0 00 )

( 2 0, 0 00)

Cos tofg oodss ol d

4 55, 0 00

57 , 00 0

TGAS

4 .

Tot al

512 , 00 0

D

Mar k uponuns ol dc ons i gne dgoods( 40 Kx40%)

1 6, 0 00

Goodshe l donc ons i gnme ntbyOpal Tot alr e duc t i oni ni nve nt or y

2 7, 0 00 43 , 00 0

CNe tme t ho d[ ( 80K+100K)x9 8%]=176, 000 Gr o s sme t ho d( 80Kx9 8%)+100K=178, 400

5 .

C  I nve nt o r y( 380, 000x98% =372, 400) ;  Ac c o unt spa ya b l e :372, 400i ni t i alme as ur eme nt+7, 600 adj us t me ntonDe c .31 ,20x1=380, 000 6 .

I ni t i a lr e c o gni t i o no nDe c . 15, 20x1: Pur c ha s e s( 380, 000x98%)

372, 400

Page|6 Ac c ount spa yabl e

37 2, 400

Ad j us t i nge nt r yo nDe c .3 1,20x1: Pur c ha s edi s c ountl os t( 380, 000x2%) Ac c ount spa yabl e

7, 600 7, 600

A So l ut i o n: EI : 200, 000x98 % x10% =19, 600 COGS: 200, 000x98% x90% =1 76, 400 7 .

C So l ut i o n: I . Di s c ounti sal l oc at edonl yt ot hegoodss ol d: Gr os s Al l oc at i onof amt s . di s c ount EI( 20 0 Kx1 0 %) 20, 000 COGS( 2 00 Kx 18 0, 000 3, 200 9 0 %) 8 .

To t a l

200, 000

200, 000

2 0, 000 176, 800

3, 200

I I . Di s c ounti sal l oc at edt obot hEIandCOGS: Gr os s Al l oc at i onof amt s . di s c ount EI( 20 0 Kx1 0 %) 20, 000 320* COGS( 2 00 Kx 18 0, 000 2, 880* 9 0 %) To t a l

Ne t amount s

Ne t amount s

1 9, 680 177, 120

3, 200

*( 3, 200x10 %) ;( 3, 20 0x90%) D So l ut i o ns : FI FO pe r i odi c  Endi ngi nvent or y ,i nuni t s=1, 400–400+800–900+700–600 =1, 000uni t s 9 .

I n uni t s

Uni tc os t

I n pe s os

Page|7

Endi ngi nve nt or y Al l oc a t i ont oJ une2 4 pur c has e Ex c e s sal l oc a t e dt oJ une14 pur c has e

1, 000 ( 700)

30

21, 000

300

35

10, 500

Endi ngi nve nt or y,i npe s os

31, 500

 TGAS, i npe s os : Dat e

Tr ans ac t i on

J une1

Bal anc ef wd.

1 4 2 4

Pur c has e Pur c has e

Quant i t y

Uni t Cos t

I npe s os

1, 400

24

33, 600

800

35

28, 000

700

30

21, 000

TGAS,i npe s os

82, 600

TGASi npe s os Endi ngi nvent or y ,i npe s os Cos tofgoodss ol d

82, 600 ( 31, 500) 51, 100

FI FO pe r pe t ual  SAMEASFI FO PERI ODI C or

Dat e J une1 8 1 4

Tr ans ac t i o n Ba l anc e Sal e Pur c ha s e

Quant i t y 1 , 40 0 4 00 8 00

Uni t Cos t 24 2 4 3 5

I n pe s os 33, 600 ( 9, 6 00) 28, 0 00

Page|8 1 8 2 4 2 9

Sal e Pur c ha s e Sa l e

9 00 7 00 60 0 1 00f r om J une1 5 00f r om J une14

2 4 3 0

( 21 , 60 0) 21, 0 00

2 4 3 5

( 2, 4 00) ( 1 7, 5 00) 3 1, 5 00 5 1, 1 00

Endi ngi nve nt or y Cos tofgoodss ol d( 9, 6 00+21 , 60 0+2 , 40 0+17 , 50 0) 1 0. A

So l ut i o ns : We i ght e dave r agepe r i odi c We i ght edAve .Uni tc os t=TGAS, i npe s os÷TGAS, i nuni t s  TGAS, i nuni t s=1, 400+800+7 00=2, 900uni t s We i ght edAve .Uni tc os t=₱82, 6 00( s eepr e vi ouss ol ut i on)÷2, 900 We i ght edAve .Uni tc os t=₱28. 4 8 Endi ngi nve nt or y=₱28. 48x1, 000uni t s=28, 480 82, 600

TGASi npe s os Endi ngi nvent or y ,i npe s os

( 28, 480)

Cos tofgoodss ol d

54, 120

We i ght e dave r agepe r pe t ual Dat e J une1

4

Quant i t y 1 , 40 0

8 Sa l e 1 Pur c has e

( 4 00)

To t a l s

1 , 80 0

Sa l e

( 9 00)

1 8 2 4

Tr ans ac t i on Bal anc ef or war de d

Pur c has e To t a l s

8 00

7 00 1 , 60 0

Uni t Cos t

I npe s os

2 4

33, 6 00 ( 9 , 60 0)

35

2 8, 0 00

2 8. 8 9

52, 0 00 ( 2 6, 0 01)

30

2 1, 0 00

2 9. 3 7

46, 9 99

Page|9 2 9

Sa l e

( 6 00)

Endi ngi nve nt or y

1, 0 00

( 1 7, 6 22) 29 , 37 7

Cos tofg oodss ol d( 9 , 60 0+2 6, 0 01+17 , 62 2)

5 3, 2 23

1 1. C

So l ut i o n: FI FO –per i odi c Be gi nni ngi nve nt or yi nuni t s Netpur c has esi nuni t s( 3, 000+4, 800+1, 900– 300) To t a lg o o dsa va i l a b l ef o rs a l ei nuni t s

2, 000 9, 400 11, 400

Tot algoodsa vai l abl ef ors al ei nuni t s

11, 400 ( 7, 4 00 ) 4, 0 00

Quant i t yofgoodss ol d( 4, 200–600+3, 800) Endi ngi nve nt o r yi nuni t s Uni t s Endi ngi nve nt or yt obeal l oc a t e d Al l o c a t e da sf o l l o ws : Fr om Nov . 29ne tpur c has e s ( 1 , 900-3 00) Ba l . t ob ea l l o c a t e dt ot h ene x tmo s t r e c e ntpur c ha s ed a t e Fr om Nov . 21pur c has e Endi ngi nve nt or yatc os t

Uni t c os t

Tot al c os t

4, 0 00

( 1 , 60 0) ₱3 8. 6 0 ₱ 61 , 76 0 2 , 40 0 ( 2 , 40 0) 3 8. 0 0 91 , 20 0 ₱1 52, 9 60

Tot a lgoodsa vai l abl ef ors al ei npe s os( s e eb e l o w) Endi ngi nve nt or ya tc os t Cos tofgoodss ol d

4 27, 7 60 ( 15 2, 9 60) 2 74 , 80 0

 TGASi npe s o s : Dat e

Tr ans ac t i on

1 Aug 7

I nve nt or y Pur c has e

Uni t Tot alc os t c os t 2, 0 00 ₱ 3 6. 0 0 ₱ 72 , 00 0 3, 0 00 37 . 20 1 11, 6 00

Uni t s

Page|10 2 1 Pur c has e 2 9 Pur c has e 3 0 Pur c h a s er e t ur n To t a lg o o dsa va i l a b l ef o rs a l e

4 , 80 0 1 , 90 0 30 0

38. 0 0 38. 6 0 3 8. 6 0

182 , 40 0 7 3, 3 40 ( 11, 5 80 ) ₱ 42 7, 76 0

FI FO –per pet ual  SAMEASFI FO PERI ODI C 1 2. A

So l ut i o n: We i ght e dAve r age-Pe r i odi c We i ght eda ve r a geuni tc os t=( ₱427, 760(a)÷11, 40 0(a))= ₱37. 52 ( a )

s e epr e vi o usc o mput a t i o ns

Endi ngi nve nt or yi nuni t s( r e f e rt op r e v i o usc o mput a t i o n) Mul t i pl yby: We i ght e da ve r a geuni tc os t Endi ngi nve nt or yatc os t Tot a lgoodsa vai l abl ef ors al ei npe s os( r e f e rt op r e v i o us t a b l e )

Endi ngi nve nt or ya tc os t Cos tofgoodss ol d

We i ght e dAve r age–Pe r pe t ual Dat e Tr ans ac t i on 1 Nov I nve nt or y 7 Pur c has e Mo v i nga v e r a g euni tc o s t= ( ₱1 83, 6 00÷5 , 00 0) 1 2

Sa l e s

1 5 Pur c has e Mo v i nga v e r a g euni tc o s t= ( ₱2 11, 7 76÷5 , 60 0) 1 6 Sa l e sr e t ur ns Mo v i nga v e r a g euni tc o s t=

4 , 00 0 3 7. 5 2 1 50 , 08 0

427 , 76 0 ( 1 50 , 08 0) 277 , 68 0

Uni t s Uni tc os t Tot alc os t 2 , 0 00 ₱3 6. 00 ₱7 2, 0 00 3 , 00 0 37. 2 0 111 , 60 0 5 , 00 0 ( 4, 20 0 ) 4 , 80 0

36. 7 2 3 6. 7 2

18 3, 60 0

38. 0 0

( 154 , 224 ) 182 , 40 0

5 , 6 00

37 . 82

2 11, 776

6 00 6, 2 00

36. 72 37 . 71

2 2, 0 32 2 33, 8 08

Page|11 ( ₱2 33, 8 08÷6 , 20 0) 2 2

Sa l e s

2 9 Pur c has e 3 0 Pur c ha s er e t ur ns Endi ngi nve nt or yi nuni t s& at c os t

( 3, 80 0 ) 1 , 90 0 ( 3 00)

3 7. 7 1 38. 6 0 3 8. 6 0

4, 0 00

( 143 ,298 ) 7 3, 34 0 ( 11 , 58 0) ₱ 152 , 27 0

Cos tofgoodss ol d( No v .12 ,₱1 54 , 224–₱22, 0 32Sa l e sr e t ur ns+No v . 2 2,₱1 43 , 298= ₱27 5, 4 90 ) 1 3. C

So l ut i o n:  Co nc e pt : TGASi st hes ameunde rLI FO andFI FO. TGASi npes os( 195, 000LI FO COGS+6 5, 000LI FO) FI FO Endi ngi nvent or yi n pe s os FI FO Cos tofgoodss ol d

240, 000 ( 65, 000 ) 175 , 00 0

1 4. A

So l ut i o n: I nvoi c epr i c ei nc l us i veofVAT VAT Shi ppi ngc os t s Tr ans i ti ns ur a nc e Commi s s i ont obr oke r Cos tofi nve nt or y

11 2, 0 00 ( 1 2, 0 00) 40, 0 00 12, 0 00 5 , 60 0 15 7, 6 00

1 5. C

So l ut i o n: Sal e s Sa l e sdi s c ount s Sa l e sr e t ur ns Ne ts a l e s

1, 00 0, 0 00 ( 5 0, 0 00 ) ( 1 0, 0 00 ) 94 0, 0 00

Page|12 Cos tofgoodss ol d: Be gi nni ngi nve nt or y Pur c has e s Pur c has er e t ur ns Pur c has edi s c ount s Fr e i ght i n TGAS Endi ngi nve nt or y Gr os spr ofit

60, 000 50 0, 0 00 ( 25, 0 00 ) ( 10 , 00 0) 60, 000 5 85, 0 00 ( 75, 0 00 )

( 5 10, 0 00 ) 4 30, 0 00

Thef r e i ght outandc ommi s s i one xpe ns ear epr es e nt e dasot her oper a t i nge xpe ns es ; t hus ,t he ydonotaffe c tt hec omput a t i onof gr os spr ofit . 1 6. C

So l ut i o n: Cos t( 50+5 ) ;( 30+4 ) ;( 1 0 9+ 6 8 )

NRV( 5 6-4) ;( 6 0-8 ) ;( 2 507 5 )

Lo we r No. ofuni t s To t a l

X

Y

Z

5 5

34

17 7

5 2

52

17 5

52 3 , 70 0 1 92, 40 0

3 4 2 , 50 0 8 5, 0 00

Tot al

175 1, 3 00 22 7, 5 0 5 04, 9 00 0

1 7. D –Ra w ma t e r i al sar enotwr i t t endowni ft hefini s hedgoods

i nwhi c ht he ywi l lbei nc or por a t e dar ee xpe c t edt obes ol da tor abovec os t .

1 8. B–Th er ec ove r yi n20x2of₱40, 0 00( 49 0 , 0 0 0–4 5 0 , 00 0 )e xc e e ds

t hepr e vi ouswr i t e down. Thus , t heamountofr e ver s al r e c ogni ze di sl i mi t e dt ot hepr e vi ouswr i t edownof₱3 0, 000 ( 4 10 , 00 0–4 40, 000 ) . 1 9. B

So l ut i o n: be g.

I nve nt or y 6 0, 0 00

Page|13 Ne tpur c ha s e s , e x c l dg. f r e i ghti n Fr e i ght i n( s que e z e )

4 65, 0 00 60, 0 00 5 10, 0 00 7 5, 0 00

COGS e nd.

OR

be g. Pur c has e s Fr e i ght i n ( s que e z e )

I nve nt or y 6 0, 0 00 5 00, 0 00 2 5, 0 00 6 0, 0 00

10 , 00 0 5 10, 0 00 7 5, 0 00

Pur c has er e t ur ns Pur c has e di s c ount s COGS e nd.

TGAS=5 10, 000COGS+75, 000EI=585, 0 00; OR TGAS=6 0, 000BI+( 500, 000–25, 000–10, 000+60, 000)Ne t pur c has e s=585, 000

2 0. A

So l ut i o n: be g. Pur c has e s Fr e i ght i n

I nve nt or y 6 0 , 00 0 5 00, 0 0 0 2 5, 0 00 Pur c has er e t ur ns( s que e ze ) 6 0 , 000 1 0 , 00 0 Pur c has edi s c ount s 5 10, 0 0 0 COGS e nd. ( 585 KTGAS–5 10K 7 5, 0 00 COGS)

Page|14

PROBLEM 5: CLASSROOM ACTIVITIES ACTI VI TY1: So l ut i o ns : PPI NG POI NTandFr e i ght ( a)Thes al et e r msar eFOBSHI COLLECT.( s e e‘ COD’Ca s hOnDe l i v e r yo nBi l lo fLa di ng ) ( b)J our nalent r y: ( i )Pe r pe t ua li nve nt o r ys ys t e m:

DATE 9 / 27 / X1(a)

J OURNAL Re f ACCOUNTS . De bi t I nve nt or y 8, 689. 29(b) I nputVAT 910. 71 Ac c ount spa yabl e Cas h

Cr e di t

8, 500. 00 1, 100. 00

t or e c o r dt h epur c ha s eo fi nv e nt o r y

( a )

Theda t eoft heBi l lofLadi ng, i . e . ,t heda t eWi c t or yLi ne rr e c e i ve s t hegoodsf r om XYZ,I nc . ( b) Pur c ha s epr i c ene tofVAT₱7, 5 89. 29+Fr e i ght( ₱9 00. 00bi l lofl a di ng +₱2 00 . 00por t e rf e e )=₱8, 6 89. 29c os tofpur c has e

( i i )Pe r i o di ci nve nt o r ys ys t e m:

DATE 9 / 27 / X1

J OURNAL Re f ACCOUNTS . De bi t Cr e di t Pur c ha s e s 7, 589. 29(c) Fr e i ght i n 1, 100. 00(d) I nputVAT 910. 71 Ac c ount spa yabl e 8, 500. 00 Cas h 1, 100. 00 t or e c o r dt h epur c ha s eo fi nv e nt o r y

Page|15 ( c )

Pur c ha s epr i c ene tofVAT ₱9 00. 00bi l lofl a di ng+₱20 0. 0 0por t e rf e e=₱1 , 10 0

( d)

ACTI VI TY2: So l ut i o ns : 1. Spec i ficI dent i fic a t i on: a . Endi ngi nvent or y ₱11. 75 b. Cos tofgoodss ol d₱7. 00–t hec os tofi t em “br oke n” 2. FI FO: 00 a . Endi ngi nvent or y ₱13. b. Cos tofgoodss ol d₱5. 75–t hec os tofi t em “happy” 3. We i ght edAve r a geCos t : ₱5. 75+₱6. 00+₱7. 00)-₱6. 25= a . Endi ngi nvent or y ( ₱12. 50 b. Cos tofgoodss ol d( ₱5. 75+₱6. 00+₱7. 00)÷3=₱6. 25

PROBLEM 6: FOR CLASSROOM DISCUSSION 1. So l ut i o n:

Sc e na r i o s : a . FOBDes t i na t i on, Fr e i ghtpr epai d b. FOBShi ppi ngpoi nt , Fr e i ghtc ol l e c t c . FOBDe s t i na t i on, Fr e i ghtc ol l e c t d. FOBShi ppi ngpoi nt , Fr e i ghtpr epai d

Cos tof i nve nt or yon De c .3 1

Ne tc as h payme ntonJ an. 5

None

100, 000

1 00, 000*

100, 000

None

94, 000

106, 000

10 6, 000

Page|16 *The₱6, 000f r ei ght i ni sr e c or de donJ an. 2, 20x2whe nEnt i t yA ac c e pt sde l i ve r yf r om t hec ar r i er . OnJ an. 2,20 x2, t het ot alc os tof t hei nvent or ywoul dbei nc r e as e dt o₱106, 000. I f , howe ve r ,Ent i t yAr e c e i vesnot i c eoft hes hi pme ntc os t f r om t hec ar r i e rbe f or ehand, t hef r ei ght i nwoul dha vebee n r e c or de donDe c e mber30,20x1( s hi pme ntda t e ) . Ac c or di ngl y ,t he c os tofi nvent or yonDec e mbe r31, 20x1woul dbe₱106, 000. Ent i t yAma ya l s owantt oe s t i ma t et hef r e i ghtc os tand r e c or dsi tonDe c .30, 20x1orDe c . 31, 20x1.Thi s ,howe ver , i s s e l dom donei npr ac t i c e . 2. So l ut i o n: Unadj us t e dbal anc e ( a )Goodsr e c e i ve donc ons i gnme nt ( d)Uns ol dgoodss e ntoutonc ons i gnme nt( 18, 000x1 /2) ( e )Fr e i ghtonuns ol dgoodsoutonc ons i gnme nt( 2 , 00 0x 1 /2)

Adj us t e dbal anc e

1 80, 0 00 ( 3 0, 0 00) 9 , 00 0 1 , 00 0 1 60, 0 00

3. So l ut i o n: I nve nt or y Unadj us t e dbal anc e s ( a) ( b) ( c ) ( d) Adj us t e dbal anc e s

500, 000 60, 000 ( 80, 000) 50, 000 30, 000 560, 000

Ac c ount s payabl e 120, 000 ( 80, 000) 50, 000 90, 000

4. So l ut i o n: a .I nve nt or yondi s pl a ys he l ve s b.I nve nt or ys t oc ke di nwar e hous e c .I nve nt or ys ol dunde rabi...