Problem 4: Computational- Multiple Choice

1. B Solutions:
2. C 1 260,000
3. D 11,000
4. D 5,000
5. C (16,000)
6. C 20,000
7. A (4,000)
8. C 276,000
9. D
10. A 2 75,000 - No adjustment needed
11. C 3 Goods in Warehouse
12. A Beginning Inventory 110,000
13. C Purchases 480,000
14. A Freight-in 10,000
15. C Transportation to Consignees
16 C Total Goods Available for sale 600,000
17. D Ending Inventory (145,000)
18. B Cost of Goods Sold 455,000
19. B
20. A 4 40,000 × 40% = 16,000
27,000
43,000

5 Net Method 180,000 × 98%

Gross Method (80,000 × 98%) + 100,000

6 Inventory 380,000 × 98%

Accounts Payable 372,400 + 7,600

7 Ending Inventory 200,000 × 98% × 90%

Cost of Goods Sold 200,000 × 98% × 10%

8 Allocation to COGS only

Ending Inventory 200,000 × 10%
200,000 × 90%
Cost of Goods Sold (200,000 - 40,000) × 2%

Allocation to both
Ending Inventory 20,000 - 320
 3,200 × 10%= 3,200
Cost of Goods Sold 180,000 - 2,880
3,200 × 90% = 2,880

9 1-Jun Balance Forwarded 1,400 × 24

14-Jun Purchase 800 × 35
24-Jun Purchase 700 × 30
Total Goods Available for Sale

1,400 + 800 + 700 2,900

400 + 900 + 600 1,900
1,000

FIFO- periodic
Unit Unit Cost
Ending Inventory 1,000
24-Jun (700) 30
300
14-Jun 300 35
Ending Inventory

GAS 82,600
EI - 31,500
COGS 51,100

FIFO- perpetual

1-Jun Balance Forwarded 1,400

8 Sale 400
14 Purchase 800
18 Sale 900
24 Purchase 700
29 Sale 600
100
500
Ending Inventory

COGS = 9,600 + 21,600 + 2,400+ 17,500 =

10 1-Jun Balance Forwarded 1,400 × 24

14-Jun Purchase 800 × 35
24-Jun Purchase 700 × 30
Total Goods Available for Sale

1,400 + 800 + 700 2,900

400 + 900 + 600 1,900
1,000
 Weighted Average - periodic
Weighted Average Cost = TGAS in pesos / TGAS in Units
= 82,600 / 2,900
= 28.48

Ending inventory = ₱28.48 x 1,000 units = 28,480

TGAS in pesos 82,600

Ending inventory, in pesos (28,480)
Cost of goods sold 54,120

Weighted Average - perpetual

Date Transaction Units
1-Jun Balance forwarded 1,400
8 Sale (400)
14 Purchase 800
1,800
18 Sale (900)
24 Purchase 700
1,600
29 Sale (600)
Ending Inventory 1,000

COGS= 9,600 + 26,001 + 17,622

11 FIFO - periodic
Beg. Inventory
Net Purchases (3,000+4,800+1900-300)
TGAS in units

TGAS in units
Net Sales (4,200-600+3,800)
EI in Units

End. Inventory 4,000

29 Purchases (1,600) 38.60
2,400
15 Purchases (2,400) 38.00
Ending Inventory at cost

Inventory 2,000 36 72,000.00

Purchase 3,000 37.2 111,600.00
Purchase 4,800 38 182,400.00
Purchase 1,600 38.6 61,760.00
TGAS 427,760.00

FIFO - perpetual
 1-Nov Inventory 2,000
7 Purchase 3,000
12 Sales (4,200-600) 3,600
beg. inventory -2,000
aug.7 purchase -1,600
15 Purchase 4,800
22 Sales 3,800
balance -1,400
aug.7 purchase -2,400
29 Net Purchases (1,900-300) 1,600
Ending Inventory at cost

12 Weighted Average - periodic

Weighted Average Cost= TGAS in Pesos/TGAS in units
=427,760/11,400
= 37.52
EI in units 4,000
EI at cost 150,080

Weighted Average -perpetual

1-Aug Inventory 2,000
7 Purchase 3,000
5,000
12 Sales (4,200)
Sales Returns 600
21 Purchase 4,800
6,200
22 (3,800)
29 1900
30 (300)
Ending Inventory in units at cost4,000

13 LIFO- COGS 195,000

LIFO - EI 45,000
FIFO-EI (65,000)
FIFO-COGS 175,000

14 112,000
(12,000)
40,000
12,000
5,600
157,600

15 Net sales
Sales
Sales Returns
 Sales Discounts

Beginning Inventory
Net Purchases
Purchases 500,000
Purchase Return -25,000
Purchase Discount -10,000
Freight In 60,000
TGAS
Ending Inventory
gross profit

16 X Y Z
55 34 177
52 52 175
52 34 175
3,700 2,500 1,300
192400 85000 227500

17 not written down

18 20x2 20x1
450,000 440,000
490,000 410,000
40,000 30,000

19 INVENTORY
BI 60,000
net purchases465,000
freight in 60,000 510,000 cogs
75,000 EI

TGAS = COGS + EI
= 510,000 + 75,000
= 585,000

20
INVENTORY
60,000 25,000
500,000 10,000
60,000 510,000
75,000

Ending Inventory = TGAS - COGS

= 585,000 - 510,000
= 75,000
Goods in Warehouse Goods held by consignees
110,000 12,000
480,000 60,000
10,000
5,000
600,000 77,000
(145,000) (20,000)
455,000 57,000 512,000

176,400
178,400

372,400
380,000

176,400
19,600

20,000 20,000
180,000
(3,200) 176,800

19,680
 177,120

33,600
28,000
21,000
82,600

Total

21,000

10,500
31,500

24 33,600.00
24 (9,600)
35 28,000.00
24 (21,600)
30 21,000.00

24 (2,400)
35 (17,500)
31,500.00

2,400+ 17,500 = 51,100

33,600
28,000
21,000
82,600
sos / TGAS in Units

Units Cost Total Cost

24 33,600
24 (9,600)
35 28,000
28.89 52,000
28.89 (26,001)
30 21,000
29.37 46,999
29.37 (17,622)
29,377

26,001 + 17,622 53,233

2,000
9,400
11,400

11,400
(7,400)
4,000

61,760

91,200
152,960

TGAS 427,760.00
EI (152,960)
COGS 274,800
 36 72000
37.2 111600
COGS 72,000
36 -72000 59,520
37.2 -59520 52,080
38 182400 91,200
274,800
37.2 -52080
38 -91200
38.6 61,760
152,960

os/TGAS in units

COGS
427,760-150,080=
277,680

36 72,000
37.2 111,600
36.72 183,600 COGS
36.72 (154,224) 154,224
36.72 22,032 -22,032
38 182,400 143,498
37.71 233,808 275,490
37.71 (143,298)
38.6 73,340
38.6 (11,580)
152,270

1,000,000
-10,000
 -50,000 940,000

60,000

525,000
585,000
-75,000 510,000
430,000

504900

GAS - COGS
85,000 - 510,000