Reference no: EM132988971
Questions -
Q1. XYZ Corporation has the following data as of December 31, 2021:
Cost Retail
Beginning inventory 300,000 450,000
Purchases 700,000 1,400,000
Additional markup 300,000
Markup cancellation 100,000
Markdown 600,000
Markdown cancellation 80,000
Sales 1,200,000
Sales return 100,000
Sales allowances 20,000
Sales discount 30,000
Employee discount 30,000
Spoilage and breakage 5,000
Compute the cost of goods sold using the FIFO method.
a. 743,981.5
b. 200,000
c. 800,000
d. 256,018.5
Q2. On January 1,2021, an entity purchased marketable securities for P6,000,000. The irrevocably designated the investment as fair value investment through other comprehensive income. The entity also paid P300,000 commission to the broker.
On December 31,2021, the investment has a fair value of 7,000,000
On December 31,2022, the investment has a fair value of 8,500,000 with cost of disposal of 300,000
On August 1,2023, the investment was sold for 5,600,000
How much is the gain or loss to be presented as component of the income statement on Dec. 31, 2023?
a. 0
b. 2,900,000 gain
c. 1400,000 loss
d. 2,900,000 loss
Q3. STU Company has the following inventory data as December 31, 2021:
Inventory - Jan. 1:
Cost 7,000,000
Net Realizable Value 6,500,000
Net Purchases 10,000,000
Inventory - Dec. 31:
Cost 8,000,000
Net Realizable Value 6,300,000
Compute for the cost of goods sold under the allowance method
a. 10,000,000
b. 10,200,000
c. 9,000,000
d. 9,200,000
Q4. On January 1, 2021, the entity purchased goods with an invoice price of 60,000 less 30%, 40% trade discount. The discount term is 2/10 n/30. If the entity uses the net method in recording the purchase, how much is the payment if the entity pays within the discount period?
a. 61,200
b. 58,800
c. 61,000
d. 60,000
Q5. On January 31, 2018 an investor bought 25% ordinary shares for 1,000,000. The following are the data regarding the investments
Dec 31, 2018 Net Loss of 1,000,000 and dividends of 400,000
Dec 31, 2019 Net loss of 1,500,000 and dividends of 200,000
Dec. 31, 2020 Net loss of 2,000,000
Dec 31, 2021 Net income of 200,000
Dec. 31, 2022 Net income 1,000,000
How much is the investment income for 2022?
a. 0
b. 225,000
c. 250,000
d. 25,000
Q6. ABC Company has the following data before the fire incident
Inventory - January 1 P 800,000
Purchases 2,000,000
Purchase return 30,000
Purchase allowance 5,000
Purchase discount 45,000
Freight in 60,000
Sales 1,210,000
Sales Return 40,000
Sales Allowance 5,000
Sales Discount 5,000
Freight out 20,000
After a fire incident the remaining inventory in good condition has a cost of 200,000.
Compute for the fire loss if the entity has 30% gross profit base on cost
a. 2,000,000
b. 3,000,000
c. 2,510,000
d. 2,310,000