Reference no: EM132618438

Questions -

Q1. Bell Inc. took a physical inventory at the end of the year and determined that P780,000 of goods were on hand. In addition, Bell, Inc. determined that P60,000 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had P90,000 of goods out on consignment. What amount should Bell report as inventory at the end of the year?

A. P780,000.

B. P930,000.

C. P840,000.

D. P870,000.

Q2. Bell Inc. took a physical inventory at the end of the year and determined that P760,000 of goods were on hand. In addition, the following items were not included in the physical count. Bell, Inc. determined that P96,000 of goods were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count).The company sold P40,000 worth of inventory f.o.b. destination. What amount should Bell report as inventory at the end of the year?

A. P760,000.

B. P896,000.

C. P856,000.

D. P800,000.

Q3. Nikes Co. has the following data related to an item of inventory:

Inventory, March 1 100 units @ P2.10

Purchase, March 7 350 units @ P2.20

Purchase, March 16 70 units @ P2.25

Inventory, March 31 130 units

The value assigned to cost of goods sold if Nikes uses FIFO is

A. P276.

B. P290.

C. P862.

D. P848.