DUDUTLANG produces and sells legitimate drugs. BTC, ADA, AXS and SLP. DUDUTLANG is currently determining the value to be presented in the statement of financial position as of December 31, 2021. The following information were provided by DUDUTLANG: BTCADAAXSSLPEst. Selling PriceP30,000P110P7,000P4Est. Selling Costs10,200502,5001Est. Costs to Complete3,000121,2001Unit Cost17,000453,4502Units10012,0001,500200,500 1. How much should be presented as inventory in the statement of financial position as of December 31, 2021? 2. Assuming the Company has P25,000,000 in sales and P19,800,000 in cost of goods sold. How much would be the gross profit if the Company uses the direct method for accounting inventory losses?

Ape IAS 2, Inventory measured at lower of Net Realisable value (NRV) and cost. Where Net realisable…

Answered: DUDUTLANG produces and sells legitimate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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DUDUTLANG produces and sells legitimate drugs. BTC, ADA, AXS and SLP. DUDUTLANG is currently determining the value to be presented in the statement of financial position as of December 31, 2021. The following information were provided by DUDUTLANG:

	BTC	ADA	AXS	SLP
Est. Selling Price	P30,000	P110	P7,000	P4
Est. Selling Costs	10,200	50	2,500	1
Est. Costs to Complete	3,000	12	1,200	1
Unit Cost	17,000	45	3,450	2
Units	100	12,000	1,500	200,500

1. How much should be presented as inventory in the statement of financial position as of December 31, 2021?

2. Assuming the Company has P25,000,000 in sales and P19,800,000 in cost of goods sold. How much would be the gross profit if the Company uses the direct method for accounting inventory losses?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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