7/22/2019 Inventory Quiz Bse

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1. M Co., 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 2,000 100

2 8,000 110

3 6,000 120

4 9,500 100

5 14,500 90

The physical inventory reveals 15,000 units on hand on December 31.

Required:

Compute for the 1. Cost of ending inventory and 2. Cost of goods sold under the method listed below

a. FIFO- periodic

b. Weighted - periodic

2. The information below is taken from the records of R Co., on December 31 of the current year.

Finished goods in storeroom, at cost including overhead of 400,000 2,000,000

Finished goods in transit, including freight charge of 20,000 FOB shipping point 250,000

Finished goods held by salesmen at selling price, cost 100,000 140,000Goods in process, at cost of materials and direct labor 720,000

Compute cost of inventory on December 31 of the current year.

3. A Co., provided the following data at year end

Items counted in the bodega 4,000,000

Items included in the count specifically segregated per sales contract 100,000

Items in receiving department, returned by customer, in good condition 50,000

Items ordered and in the receiving department, invoice not received 400,000

Items ordered, invoice received but goods not received. Freight is paid by seller 300,000

Items shipped today, invoice mailed, FOB shipping point 250,000

Items shipped today, invoice mailed, FOB destination 150,000Items currently being used for window display 200,000

Items on counter for sale 800,000

Items in receiving department, refused by us because of damage 180,000

Items included in count, damaged and unsalable 50,000

Items in the shipping department 250,000

Compute the correct amount of inventory.

4. The inventory records of G Co. indicate that the purchases and sales for the month of March of the

current year are as follows:

Units Unit cost

March 1 Beginning 1,000 270

6 Purchase 3,000 250

14 Purchase 6,000 280

25 Purchase 4,000 210

March 9 Sale 2,000

31 Sales 8,000

Assuming the entity uses perpetual system, compute the ending inventory and cost of goods sold under

a. FIFO

b. Moving average