NAME/SECTION __________________________________ SCORE___________

1. Stone company had the following consignment transactions during the current year:
Inventory received on consignment from a consignor 600,000
Freight paid by consignor 50,000
Inventory shipped on consignment to a consignee 800,000
Freight paid by stone company 50,000
No sale of consigned goods were made.
What amount should be reported as consigned inventory at year-end? 850,000
2. Plapla Company revealed year-end inventory amounting to P2,500,000 and identified the following data:
a. A package containing a product costing P85,000 was standing in the shipping area when the physical inventory
was conducted. This was not included in the inventory because it was marked “Hold for shipping instructions”.
The purchase order was dated December 29, 2023 but the package was shipped and the customer was billed
January 4, 2024 for P120,000.
b. A regular product was discovered to be present at year-end the shipping area with cost of P170,000. This item
was not included in the year-end count.
c. A defective product costing P160,000 was present at the receiving department at year-end. This was from a
customer which was returned.
d. A special product was fabricated to order for a particular customer, was finished and in the shipping room on
December 30, 2023. The product was included in the inventory. The machine costing P220,000 was shipped
January 4, 2024 and billed for P320,000.
The adjusted inventory at December 31, 2023 is ___________________.
2 - PLA 2,535,000 Unadjusted
sale - "hold for shipping instruction
for sale shipping area
special product
Adjusted

3. Duke Company specializes in the sale of IBM compatibles and software packages. It had the following
transactions with one of its suppliers:
Purchases of IBM compatibles 1,700,000
Purchases of commercial software packages 1,200,000
Returns and allowances 50,000
Purchase discounts taken 12,000
Purchases were made throughout the year on terms 2/10, n/30. All returns and allowances took place within 5 days
of purchase and prior to any payment on account. Discount lost is ______________.
3 - Duke 45,000 Purchases
Returns
Net Purchases
Available discount
Taken
Lost

4. Jourdan Company had its year-end inventory count on December 31, 2023. Year-end items considered are the
following:
Items counted in the bodega 3,200,00
0
Items held on consignment (included in the bodega) 250,000
Items held by salesmen at sales price (150% of cost) 225,000
Items in shipping area (segregated per sales contract) 120,000
Items in counters 222,000
Jourdan’s inventory should be presented at the amount of _________________.
adjusted balance

2 - PLA 2,325,000 Unadjusted

sale - "hold for shipping instruction
for sale shipping area
5. HellenDeheneres Company presented costs incurred on inventories as follows:
Cost of purchases based on vendor’s invoices P1,500,000
Trade discounts on purchases already deducted from vendor’s invoices 50,000
Import duties 80,000
Freight and insurance on purchases 120,000
Handling costs relating to imports 25,000
Salaries of accounting department 150,000
Brokerage commission paid to agent for arranging imports 50,000
Insurances on inventory in warehouse 12,000
The total cost of the purchases should be _________________.
6- Hel 1,775,000 Invoices
Import duties
Freight and insurances
Handling
Brokerage

6. Look Company reviewed its year-end inventory and found the following items:
a. Merchandise costing P32,500 was received on January 2, 2024 and the related purchase invoice was recorded
December 30, 2023. The invoice showed the shipment was made December 29, 2023, FOB Shipping point. The
company did not include the item in its year-end count.
b. Excluded in the count were tools shipped to a customer on terms, FOB destination on December 31, 2023. The
sales, recorded on December 31, 2023 were billed at P45,000 and costed P28,000. The customer received the
items on January 2, 2024.
The assuming the net income was reported at P2,350,000, the adjusted net income should be __________________.
7- Look 2,365,500 Unadjusted net income
FOB Purchase SP
FOB Sales Destination

7. Marker Company has the following information pertaining to its merchandise inventory as of December 31, 2023:
Inventory on hand 200,000
Inventory out on consignment 120,000
Purchases in transit, FOB, shipping point 155,000
Purchases in transit, FOB, destination 200,000
Purchases on board vessel, free alongside 250,000
Purchases in transit, CIF 142,000
Purchases on board vessel, Ex-ship 170,000
What amount should Marker Company report as value of its inventory in its 2023 statement of financial position?
8 - Mark 867,000 Inventory on hand
Inventory on consignment
Merch in transit SP
Merch in transit FAS
Merch in transit CIF

1- Richelle 20,500,000

8. The following inventory information pertains to television sets carried by Richelle Company for the year ended
December 31, 2023.
Date Units Unit Cost
January 1 Beginning Inventory 2,000 2,200
April 1 Purchases 10,00 3,000
0
October 1 Purchases 5,000 3,500
The entity had 7,000 units on hand as of year-end. What is the cost of the inventory using FIFO?
 1- Richelle 23,500,000 Units Unit Cost
1 Beginning Inventory 2,000 2,200
2 Purchases 10,000 3,000
3 Purchases 5,000 3,500
Inventory 2,000 3,000
5,000 3,500

9. Frey Company recorded the following data pertaining to Inventory during January of the current year.
Date Units Unit Cost
1/1 Beginning Inventory 8,000 200
1/8 Sold 4,000
1/20 Purchases 12,000 220
What is the value of the inventory using periodic weighted average?

10. What is the value of the inventory using moving average?

3 -Frey 3,392,000 Moving
4 -Frey 3,440,000 Date Units
1-Jan 8,000
8-Jan (4,000)
Balance 4,000
20-Jan 12,000
Total 16,000

Weighted
1-Jan 8,000
20-Jan 12,000
Total 20,000
Inventory - Periodic 16,000

End of Examination