This study source was downloaded by 100000832144022 from CourseHero com on 05 20 2022 07 07 02 GMT 05 00 https www coursehero com file 91990498 INVENTORY PROBLEMS 341 QUIZ pdf Question 1 Problem 1 LCS Enterprises is a wholesaler and retailer store The following data is presented to you Items currently being used for window display 294 322 Items in receiving department refused due to damage 180 000 Items in the receiving dock returned by the customer in good condition 50 000 Items in the shipping department 251 766 Items in the warehouse 376 598 Items included in count damaged and unsalable 43 330 Items included in the count but segregated per sales contract with a client 132 860 Items on counter for sale 844 412 Items ordered from a supplier in Manila and in the receiving department 465 321 Items ordered invoice received but goods not received Freight is on account of seller 376 018 Items shipped today invoice mailed FOB destination 150 000 Items shipped today invoice mailed FOB shipping point 255 432 What is the correct amount of inventory Items currently being used for window display 294 322 Items in the receiving dock returned by the customer in good condition 50 000 Items in the shipping department 251 766 Items in the warehouse 376 598 Items included in count damaged and unsalable 43 330 Items included in the count but segregated per sales contract with a client 132 860 Items on counter for sale 844 412 Items ordered from a supplier in Manila and in the receiving department 465 321 Items shipped today invoice mailed FOB destination 150 000 Inventory 2 256 229 Question 2 Problem 2 Mario Bros took a physical inventory at the end of the year and determined that P2 600 000 of goods were on hand In addition the entity determined that P200 000 of goods purchased in transit shipped FOB shipping point were actually received two days after the physical count and that the entity had P300 000 of goods out on consignment What amount should be reported as inventory at year end Goods on hand 2 600 000 Goods purchased in transit FOB shipping point 200 000 Goods out on consignment 300 000 Inventory at year end 3 100 000 This study source was downloaded by 100000832144022 from CourseHero com on 05 20 2022 07 07 02 GMT 05 00 https www coursehero com file 91990498 INVENTORY PROBLEMS 341 QUIZ pdf Question 3 Problem 3 Biker Company provided the following information at the end of the current year Finished goods in storeroom at cost including overhead of P400 000 or 20 2 000 000 Finished goods in transit including freight charge of P20 000 FOB shipping point 250 000 Finished goods held by salesman at selling price cost P100 000 140 000 Goods in process at cost of materials and direct labor 720 000 Raw materials 1 000 000 Raw materials in transit FOB destination 50 000 Defective materials returned to suppliers 100 000 Shipping supplies 20 000 Gasoline and oil for testing finished goods 110 000 Machine lubricants 60 000 What is the correct amount of inventory Finished goods in storeroom at cost including overhead of P400 000 or 20 2 000 000 Finished goods held by salesman at selling price cost P100 000 100 000 Goods in process at cost of materials and direct labor 900 000 Raw materials 1 000 000 Defective materials returned to suppliers 100 000 Gasoline and oil for testing finished goods 110 000 Machine lubricants 60 000 Inventory 4 270 000 Computation for Cost of Materials and Direct Labor Finished goods in storeroom 100 Cost of Overhead 20 Cost of Materials and Direct Labor 80 Computation for Goods in Process at Cost of Materials and Direct Labor Goods in Process 720 000 Cost of Materials and Direct Labor x 80 Goods in Process at Cost of Materials and Direct Labor 900 000 This study source was downloaded by 100000832144022 from CourseHero com on 05 20 2022 07 07 02 GMT 05 00 https www coursehero com file 91990498 INVENTORY PROBLEMS 341 QUIZ pdf Question 4 Problem 4 Rissa Inc reported total assets of P1 200 000 and net income of P135 000 for the current year Rissa determined that inventory was overstated by P10 000 at the beginning of the year this was not corrected Determine the corrected amount for the year of the following 1 Total assets Reported total assets 1 200 000 Total Assets 1 200 000 Question 5 Problem 4 Rissa Inc reported total assets of P1 200 000 and net income of P135 000 for the current year Rissa determined that inventory was overstated by P10 000 at the beginning of the year this was not corrected Determine the corrected amount for the year of the following 2 Net income Net Income 135 000 Overstated Inventory 10 000 Adjusted Net Income 145 000 Question 6 Problem 5 The following information is available for HRH Company for 2019 Freight in P 30 000 Purchase returns 75 000 Selling expenses 150 000 Ending inventory 260 000 The cost of goods sold is equal to 400 of selling expenses What is the cost of goods available for sale Ending Inventory 260 000 Cost of Goods Sold 150 000 x 400 600 000 Cost of Goods Available for Sale 860 000 This study source was downloaded by 100000832144022 from CourseHero com on 05 20 2022 07 07 02 GMT 05 00 https www coursehero com file 91990498 INVENTORY PROBLEMS 341 QUIZ pdf Question 7 Problem 6 Covid Company used a perpetual inventory system At the end of 2020 the inventory account was P360 000 and P30 000 of those goods included in ending inventory were purchased FOB shipping point and did not arrive until 2021 Purchases in 2021 were P3 000 000 The perpetual inventory records showed an ending inventory of P420 000 for 2021 A physical count at the end of 2021 showed an inventory of P380 000 Inventory shortages are included in cost of goods sold What amount should be reported as cost of goods sold for 2021 Beginning Inventory 360 000 Purchases 3 000 000 Goods Available for Sale 3 360 000 Ending Inventory 380 000 Cost of Goods Sold 2 980 000 Computation for Beginning Inventory Ending Inventory 2020 360 000 Goods FOB shipping point 30 000 Beginning Inventory 390 000 Question 8 Problem 7 On October 1 2021 Cycle Company consigned 40 bicycles to Runner Company costing P14 000 each for sale at P20 000 each and paid P16 000 in transportation costs On December 30 2021 Runner reported sale of 10 bicycles and remitted P170 000 The remittance was net of the agreed 15 commission What mount should be recorded as consignment sales for 2021 Remittance 170 000 Commission 170 000 85 x 15 30 000 Consignment Sales 200 000 Question 9 Problem 8 Bakers Pal regularly buys