Scribd
Upload
201 views1 page

Assignment Inventories

The document outlines inventory movements for TAIWAN CORP. in September, detailing beginning inventory, purchases, and sales, with requirements to compute ending inventory, cost of goods sold, and gross profit using FIFO and average methods. Additionally, it provides unadjusted balances from THAILAND CORP.'s trial balance for 2021, including merchandise inventories and accounts receivable, along with information about sales and consignment transactions. The document emphasizes the need for calculations related to inventory and sales transactions for both companies.

Uploaded by

agotcleozha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
201 views1 page

Assignment Inventories

The document outlines inventory movements for TAIWAN CORP. in September, detailing beginning inventory, purchases, and sales, with requirements to compute ending inventory, cost of goods sold, and gross profit using FIFO and average methods. Additionally, it provides unadjusted balances from THAILAND CORP.'s trial balance for 2021, including merchandise inventories and accounts receivable, along with information about sales and consignment transactions. The document emphasizes the need for calculations related to inventory and sales transactions for both companies.

Uploaded by

agotcleozha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ASSIGNMENT: 1 whole sheet of paper (Show your Complete Solution)

INVENTORY COST FLOW


1. The following information is available regarding the inventory movements of TAIWAN CORP. for the month of
September:
At the beginning of the month, the company has 2,000 units with a cost of P36.00 per unit.
PURCHASES SALES
DATE UNITS UNIT COST DATE UNITS PRICE
9/3 3,000 37.20 9/6 4,200 45
9/15 4,800 38.00 9/7 (600) 45
9/20 1,900 38.60 9/16 3,800 50
9/23 (300) 38.60
REQUIREMENTS: Compute for (a) ending inventory; (b) cost of goods sold; (c) gross profit under the following cost
formulas:
(1) First-in, First-out Method (FIFO) (3) Average Method - Perpetual
(2) Average Method – Periodic

2.
1. An excerpt coming from THAILAND CORP.’s trial balance revealed the following unadjusted balances for the year
ended 2021:
Merchandise Inventories (based on physical count) 400,000
Accounts Receivable 600,000
Accounts Payable 350,000
The annual inventory count of THAILAND was conducted on December 27, 2021 on the company’s warehouses only.
THAILAND applied constantly a gross profit rate of 60% to its sales transactions during the year.
The following information relates to the Company’s inventory account:
• Goods shipped to a customer on December 28, 2021 were sold under FOB Shipping Point at an invoice price
of P200,000.
• Goods sent out of consignment on December 30 to VIETNAM INC. were recorded as sales amounting to
P300,000. The freight cost related to the consignment agreement was paid by VIETNAM in the amount of
P10,000. The said freight cost was debited as a selling cost and credited as accounts payable by THAILAND.
It was known that one-third of the inventories were already sold to the customer of VIETNAM as of December
31.

You might also like