Harry Company sells a new product. During a move to a new location, the inventory records for the product were misplaced. The entity has been able to gather some information from the purchases and sales records. The July purchases are as follows: Quantity Unit Cost Total Cost July 5 10,000 65 650,000 10 12,000 70 840,000 15 15,000 60 900,000 25 14,000 55 770,000 On July 31, 17,000 units were on hand. The sales for July amount to P6,000,000, or 60,000 units at P100 per unit. Gross profit on sales for July was P2,400,000. 1. What is the number of units available for sale on July 1?
1. Harry Company sells a new product. During a move to a new location, the inventory records for the
product were misplaced. The entity has been able to gather some information from the purchases and
sales records. The July purchases are as follows:
Quantity Unit Cost Total Cost
July 5 10,000 65 650,000
10 12,000 70 840,000
15 15,000 60 900,000
25 14,000 55 770,000
On July 31, 17,000 units were on hand.
The sales for July amount to P6,000,000, or 60,000 units at P100 per unit. Gross profit on sales for July
was P2,400,000.
1. What is the number of units available for sale on July 1?
2.Elirie Company, bought a 10-hectare land for P5,850,000 to be improved, subdivided into lots and
eventually sold.
Taxes and documentation expenses on the transfer of the property amounted to P80,000.
Lot class Number of lots Selling price per lot Total clearing cost
A 10 100,000 None
B 20 80,000 100,000
C 40 70,000 300,000
D 50 60,000 800,000
2. What amount should be allocated as total cost of Class B lots under the relative sales price method?
3- 5 At year-end, Erich Company had a fire which destroyed the goods in process inventory. A physical
inventory was taken after the fire.
The raw materials were valued at P600,000, the finished goods at P1,000,000 and factory supplies at
P100,000 at year-end.
The beginning inventories consisted of the following:
Finished goods 1,400,000
Goods in process 1,000,000
Raw materials 300,000
Factory supplies 400,000
INTERMEDIATE ACCOUNTING 1
4 | P a g e
Data for the current year
Sales 3,000,000
Purchases 1,000,000
Freight-in 100,000
Direct labor 800,000
Manufacturing overhead – 50% of direct labor ?
Average gross profit on sales 30%
3.. What is the cost of goods sold?
4. What is the cost of goods manufactured?
5. What is the estimated cost of the ending goods in process that were completely destroyed by fire?
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