Professional Documents
Culture Documents
P167,150
2.
P641,000
3.
P1,508,750
4.
P1,153,975
5.
Inventory, January 1
Purchases
Goods available for sale
Cost of goods sold (4,000,000 x 70%)
Inventory, based on gross profit test
Inventory, per count
Missing inventory
P 450,000
3,150,000
P3,600,000
2,800,000
P 800,000
750,000
P 50,000
6.
Inventory, January 1
Purchases
Additional markup
Markdown
Goods available for sale
Cost ratio = 46,800 / 69,800 = 67%
Sales
Cost
P14,200
32,600
P46,800
Retail
P20,100
50,000
1,900
(2,200)
P69,800
60,000
Chapter 5
Inventories and Related Expenses
Ending inventory at retail
Cost ratio
Inventory, December 31
7.
P 9,800
67%
P6,566
P 320,000
1,400,000
P1,720,000
P 300,000
1,800,000
( 250,000)
P1,850,000
350,000
P2,200,000
60%
1,320,000
P400,000
360,000
P 40,000
Items 8 and 9
Overhead = 25% x P900,000 =
Direct labor cost = P225,000/75%
Direct materials 900,000 225,000 300,000
Total manufacturing cost
Per audit:
P225,000
300,000
375,000
P900,000
Per client
P225,000
275,000
400,000
P2,300,000
( 50,000)
80,000
( 100,000)
P2,230,000
Adjustment
P
0
25,000
(25,000)
Chapter 5
Inventories and Related Expenses
Items 11 through 14
Per client
Parts held on consignment,
recorded as
purchases and included in
inventory
Parts sold still included in
inventory
Parts sold FOB shipping point
Goods out on consignment
Goods purchased in transit,
FOB
shipping point
Freight bill, unrecorded,
relating to
unsold goods
Cash discounts available
Per audit
Inventory
Accounts
Payable
1,250,000
1,000,000
(155,000)
(155,000)
---
(22,000)
22,000
40,000
210,000
(210,000)
25,000
25,000
2,000
2,000
(5,300)
1,304,700
(5,300)
866,700
Inventory
Purchases
P 17,940
9,040,000
(188,000)
Sales
Net income
P(17,940)
(31,380)
(12,150)
18,200
P(7,390)
Items 15 through 18
March purchases recorded in Apr
Shipments in April
Goods shipped on March 31
Goods not counted
Understate (overstatement)
19.
20.
(31,380)
(12,150)
18,200
P6,050
P17,940
P(31,380)
P353,300
474,700
220,000
P1,048,000
(100,000)
( 25,000)
P923,000
P 50
18,460
32.60 x 0.10
(11 months)
P 33.15
58
199,875 /
32.50
P 75,000
596,700
(474,70
0)
P197,000
6,150
18,000
(18,460)
5,690
P50,550
50,400
50,250
39,746
P190,9
46
Chapter 5
Inventories and Related Expenses
TIGER CORPORATION
Per count
Coins and currencies
Checks
Petty cash vouchers
December 2012
January 2013
Advances to Officers and Employees
December 2012
January 2013
Total per count
Cashiers accountability
Petty cash fund
Collections
December collection
P1,500
January 2006 collection
2,700
Cash shortage
P4,700
4,200
P1,900
500
2,400
P 900
300
1,200
P12,500
P10,000
4,200
14,200
P1,700
Cash in Bank
Unadjusted Balances
Deposits in transit
Unrecorded and undeposited collections (see above)
Unreleased checks
Stale checks
Outstanding checks (22,630 5,750 4,280)
Uncollected note from Sergio Garcia
Principal
P3,600
Interest
108
DAIF Check from customer
Service charges
Adjusted balances
Per Bank
P252,742
10,700
1,500
Per Books
P247,820
1,500
5,750
4,280
(12,600)
P252,342
(3,708)
(2,850)
( 450)
P252,342
Adjusting entries
Selling and Administrative Expenses
Receivable from Officers and Employees (900 + 1,700)
Petty Cash Fund
1,900
2,600
Cash in Bank
Accounts Receivable
Accounts Payable (5,750 + 4,280)
11,530
4,500
1,500
10,030
6,558
450
Sales
8,000
Accounts Receivable
59
7,008
8,000
Chapter 5
Inventories and Related Expenses
Inventories
Cost of Sales
7,500
Sales
10,000
7,500
Accounts Receivable
10,000
Accounts Receivable
Sales
12,000
Cost of Sales
Inventories
10,200
Per Audit
Provision rate for uncollectibles
Required allowance
Existing allowance
Deductions from uncollectible accounts expense
Notes Receivable
Notes Payable
Interest Expense
Interest Payable
10,000 x 22% x 30/360 = 183
12,000
10,200
47
47
P328,300
( 1,500)
6,558
(8,000)
(10,000)
12,000
P327,358
5%
P 16,368
16,415
P ( 47)
10,000
10,000
183
183
Interest Receivable
Interest Income
20,000 x 18% x 77/360 = P770
15,000 x 20% x 59/360 =
492
8,000 x 15% x 46/360 =
153
Total
P1,415
1,415
2,930
60
1,415
2,930
Chapter 5
Inventories and Related Expenses
Answers:
1.
Petty Cash
2.
Cash in bank
3.
4.
5.
6.
7.
8.
Accounts receivable
Allowance for doubtful accounts
Notes receivable
Interest receivable
Merchandise inventory
Receivables from officers and
Employees
9.
10.
11.
Accounts payable
Notes payable
Interest Payable
12.
13.
14.
15.
16.
17.
18.
19.
20.
P5,50
0
252.34
2
327,35
8
16,368
43,000
1,415
221,300
12,84
0
397,03
0
73,070
11,363
10,16
2
1,869,000
1,184,700
530,300
12,553
9,820
56,703
72,838
2,224,430
61