b. RCISES 9 For the Independent cases below, eriodic inventory system: , supply

Question

b. RCISES 9 For the Independent cases below, eriodic inventory system: , supply the missing data for the cost of sales items under the Case A Case Case D Case E Case C Case F Merchandise Inventory Beginning P25,000 P30,000 P P80,000 P200,000 S 300,000 483,000 360,000 270,000 550,000 Purchases Freight in 2,500 2,000 8,000 5,500 1,200 Purchase Returns and Allowances 15,000 25,00017,000 11,000 14,000 Merchandise Inventory 80,000 100,000 ?110,000 55,000 135,000 Cost of Sales ? P 252000 P 504,000 P 370,000 P 292,200 P 617,500 pg 25

Explanation / Answer

Solution- Case A:

Cost of Sales = Beginning Inventory + Purchases +Freight In - Purchase Returns and allowances- Ending Inventory

= 25,000 +300,000 +2,500 - 15,000 - 80,000

= P232,500

Solution- Case B:

Cost of Sales = Beginning Inventory+Purchases +Freight In - Purchase Returns and allowances- Ending Inventory

252000 = 30000 +Purchases +2000 - 25000 -100000

252000 = Purchases - 93000

Purchases = P345,000

Solution- Case C:

Cost of Sales = Beginning Inventory+Purchases +Freight In - Purchase Returns and allowances- Ending Inventory

504000 = 100000+ 483000 + 8000 - 17000 -Ending Inventory

504000 = 574000 -Ending Inventory

Ending Inventory = P70,000

Solution- Case D:

Cost of Sales = Beginning Inventory+Purchases +Freight In - Purchase Returns and allowances- Ending Inventory

370000 = Beginning Inventory + 360000 + 5500 - 11000 - 110000

Beginning Inventory = P125,500

Solution- Case E:

Cost of Sales = Beginning Inventory+Purchases +Freight In - Purchase Returns and allowances- Ending Inventory

292200 = 80000 +270000 +1200 -Purchase Returns and allowances - 55000

Purchase Returns and allowances = P4,000

Solution- Case F:

Cost of Sales = Beginning Inventory+Purchases +Freight In - Purchase Returns and allowances- Ending Inventory

617500 = 200000 + 550000 +Freight In - 14000 - 135000

Freight In = P16,500

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