Reference no: EM132758364
The following information was provided by the bookkeeper of COW, INC.:
1. Sales for the month of June totaled 286,000 units.
2. The following purchases were made in June:
DATE QUANTITY UNIT COST
June 4 50,000 P13.000
June 8 62,500 12.50
June 11 75,000 12.000
June 24 70,000 12.40
3. There were 108,500 units on hand on June 1 with a total cos of P1,450,000. Cow, Inc. uses a periodic FIFO costing system. The company's gross income for June was P2,058,750.
Problem 1. How many units were on hand on June 30?
a. 80,000 c. 28,500
b. 177,500 d. 149,000
Problem 2. What is FIFO cost of the company's inventory on June 30?
a. P1,025,000 c. P988,000
b. P1,016,230 d. P1,069,124
Problem 3. What is the total cost of goods sold in June?
a. P3,632,200 c. P3,580,126
b. P3,617,900 d. P3,661,250
Problem 4. The 285,000 units sold in June had a unit selling price of
a. P20 c. P12.70
b. P13 d. P7.20
Problem 5. An essential procedural control to ensure the accuracy of the recorded inventory quantities is
a. Performing a gross profit test.
b. Testing inventory extensions.
c. Calculating unit costs and valuing obsolete or damaged inventory items in accordance with inventory policy.
d. Establishing a cutoff for goods received and shipped.