Sana Oil Corporation, a manufacturer of cooking oil made of corn since 2010. For the taxable year 2018 however, it started its operations as a VAT registered (from being VAT Exempt). The following were th transactions during the quarter taken from its books and available records as follows: TRANSACTIONS Sales (ex. of vat) Purchases: Corn used as raw materials (ex. of vat) Supplies and other materials (ex. of vat) Two heavy equipment, useful life is 8 years Four light equipment, useful life is 4 years Beginning Inventory: Supplies/other materials from VAT suppliers Supplies/other materials from non VAT suppliers JULY P 850,000 130,000 160,000 900,000 550,000 15,000 65,000 AUGUST SEPTEMBER P 720,000 P 800,000 165,000 185,000 215,000 180,000

Sana Oil Corporation, a manufacturer of cooking oil made of corn since 2010. For the taxable year 2018 however, it started its operations as a VAT registered (from being VAT Exempt). The following were th transactions during the quarter taken from its books and available records as follows: TRANSACTIONS Sales (ex. of vat) Purchases: Corn used as raw materials (ex. of vat) Supplies and other materials (ex. of vat) Two heavy equipment, useful life is 8 years Four light equipment, useful life is 4 years Beginning Inventory: Supplies/other materials from VAT suppliers Supplies/other materials from non VAT suppliers JULY P 850,000 130,000 160,000 900,000 550,000 15,000 65,000 AUGUST SEPTEMBER P 720,000 P 800,000 165,000 185,000 215,000 180,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 33P

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