Reference no: EM132572942

Question 1 - Healer Company's inventory at June 30, 2019 was P840,000 based on a physical count of goods priced at cost before any necessary year-end adjustment relating to the following:

Included in the physical count were goods billed to a customer FOB shipping point on June 30, 2019. These goods costing P20,000 were picked up by the carrier on July 9, 2019.

Goods shipped FOB destination on June 28, 2019 from a vendor to Healer was received on July 2, 2019. The invoice cost was P25,000.

Included in the physical count were goods costing P67,000 on consignment. Healer is a consignee to these goods.

Goods were in transit from a vendor to Healer on June 30, 2019. The invoice cost was P60,000 and the goods were shipped FOB shipping point on June 27, 2019. Healer received the goods on July 4, 2019.

What amount of inventory should be reported in the June 30, 2019 Statement of Financial Position?

Question 2 - Tape Company reported the following balances at December 31, 2019 and 2020:

December 31, 2020 December 31, 2019

Inventory P2,600,000 P2,900,000

Accounts Payable 750,000 500,000

The company paid its suppliers P4,900,000 during the year ended December 31, 2020.

Required -

1. How much is the total purchases for the year 2020?

2. Prepare entries to record the purchases on account and the subsequent payment to suppliers during the year ended December 31, 2020.

3. How much is the cost of goods sold in its December 31, 2020 Income Statement?