Reference no: EM132619210
Problem 1 - On January 1, 2020, Palmer, Inc. bought 40% of the outstanding shares of Arnold Corporation at a cost of P137,000. The equity method of accounting for this investment is used. During 2020, Arnold Corporation reported P30,000 of net income. Palmer received P4,000 dividends from Arnold Corporation. At the end of 2020, the shares had a market value of P150,000.
At what amount should the Arnold's investment be reported at on the December 31, 2020 Statement of Financial Position?
a. P150,000
b. P148,000
c. P145,000
d. P158,000
Problem 2 - CLOY company conducted a physical count on December 31,2020 which revealed with an inventory cost of P4,510,000. The following transactions revealed to be excluded from the count:
Merchandise costing P480,000 was shipped by CLOY , FOB Destination to a customer on December 31,2020. Expected to receive the goods by customer on January 5,2021.
Merchandise of P710,000 was shipped to KDrama Co. for consignment on December 28,2020. The items are still unsold as of December 31,2020.
Merchandise costing P560,000 was shipped by CLOY , FOB Shipping point to a customer on December 29,2020. The customer expected to receive the goods on January 5,2021.
Merchandise costing P830,000 shipped by a vendor , FOB Destination on December 31,2020. It was received by CLOY on January 5,2021.
Merchandise costing P610,000 purchased FOB Shipping point was shipped by the supplier on December 31,2020 and received by CLOY on January 5,20201.
What is the correct amount of inventory on December 31, 2020?
a. 6,430,000
b. 6,160,000
c. 5,600,000
d. 6,310,000
Problem 3 - Klaus COMPANY reported inventory on December 31, 2020 at P6,000,000 based on a physical count at cost and before any necessary year-end adjustments relating to the following:
Included in the physical count were goods billed to a customer FOB shipping point on December 31, 2020. These goods had a cost of P125,000 and were picked up by the carrier on January 7, 2021. (Goods still in shipping department)
Goods shipped FOB Shipping point on December 28, 2020 from a vendor to Klaus COMPANY were received on January 4, 2021 The invoice cost was P300,000.
What amount should be reported as inventory on December 31, 2020?
a. 5,875,000
b. 6,300,000
c. 6,000,000
d. 6,175,000
Problem 4 - The Moss Company presents the following data for 2020.
Net Sales, 2020 P3,007,124
Net Sales, 2019 930,247
Cost of Goods Sold, 2020 2,000,326
Cost of Goods Sold, 2019 1,000,120
Inventory, beginning of 2020 341,169
Inventory, end of 2020 376,526
The merchandise inventory turnover for 2020 is:
a. 15.6
b. 5.6
c. 7.5
d. 7.7
Problem 5 - MJE Company has the following information:
|
(per unit)
|
Product A
|
Product B
|
Product C
|
|
Historical cost
|
190
|
106
|
53
|
|
Selling price
|
212
|
145
|
74
|
|
Cost to sell
|
19
|
8
|
22
|
|
Units remaining
|
100
|
250
|
30
|
Inventories shall be measured at lower of cost and NRV. How much should MJE company account as Product B ending inventory?
a. 36,250
b. 26,500
c. 34,250
d. 25,600