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  • Pas 2 Inventories Ans Key

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    Teree Zu
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    The document contains sample problems and solutions related to inventory accounting. Problem 1 contains true/false questions, Problem 2 has multiple choice, and Problems 3, 4, and 5 provide word problems with numerical solutions. Key details calculated in the solutions include ending inventory quantities and amounts, weighted average unit costs, and cost of goods sold.

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    The document contains sample problems and solutions related to inventory accounting. Problem 1 contains true/false questions, Problem 2 has multiple choice, and Problems 3, 4, and 5 provide word problems with numerical solutions. Key details calculated in the solutions include ending inventory quantities and amounts, weighted average unit costs, and cost of goods sold.

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    2K views3 pages

    Pas 2 Inventories Ans Key

    Uploaded by

    Teree Zu
    The document contains sample problems and solutions related to inventory accounting. Problem 1 contains true/false questions, Problem 2 has multiple choice, and Problems 3, 4, and 5 provide word problems with numerical solutions. Key details calculated in the solutions include ending inventory quantities and amounts, weighted average unit costs, and cost of goods sold.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    PAS 2 Inventories

    SCORING: 25 x 4 = 100/100

    PROBLEM 1: TRUE OR FALSE


    1. FALSE
    2. FALSE
    3. TRUE
    4. FALSE
    5. TRUE
    6. TRUE
    7. FALSE
    8. TRUE
    9. FALSE
    10. TRUE

    PROBLEM 2: MULTIPLE CHOICE


    1. D
    2. A
    3. C
    4. D
    5. C
    6. A
    7. D
    8. D
    9. A
    10. A
    PROBLEM 3: FOR CLASSROOM DISCUSSION
    1. C

    2. A
    Solution:
    Ending inventory, in units = (3,000 + 2,250 + 10,200 – 2,700 – 7,200) = 5,550

    Units Unit cost Total cost


    Ending inventory in units 5,550
    Allocation to latest purchases:
    Jan. 26 2,250 20.60 46,350
    Jan. 6 (balance) 3,300 21.50 70,950
    Ending inventory in pesos 117,300

    TGAS (58,650 + 219,300 + 46,350) 324,300


    Less: Ending inventory in pesos (117,300)
    COGS 207,000

    3. C Solution:
    Weighted ave. unit TGAS in pesos
    =
    cost TGAS in units
    Weighted ave. unit (58,650 + 219,300 + 46,350) = 324,300
    =
    cost (3,000 + 10,200 + 2,250) = 15,450
    Weighted ave. unit
    = 20.99
    cost

    Ending inventory in units 5,550


    Multiply by: Wtd. Ave. Cost 20.99
    Ending inventory in pesos 116,495

    TGAS in pesos 324,300


    Less: Ending inventory in pesos (116,495)
    COGS 207,805
    4. B Solution:
    Unit
    Units Total Cost
    Cost
    Balance at January 1, 2002 3,000 19.55 58,650
    January 6, 2002 10,200 21.5 219,300
    TGAS 13,200 21.06 277,950
    January 7, 2002 (2,700) 21.06 (56,862)
    January 26, 2002 2,250 20.6 46,350
    TGAS 12,750 20.98 267,438
    January 31, 2002 (7,200) 20.98 (151,056)
    Ending inventory 5,550 116,382

    COGS = (56,862 + 151,056) = 207,918

    5. D Solution:
    Product A Product B Product C Total
    Purchase price 100,000 250,000 300,000
    Freight-in 12,000 30,000 36,000
    Cost 112,000 280,000 336,000

    Selling price 210,000 300,000 570,000


    Freight-out (10,500) (75,000) (11,400)
    NRV 199,500 225,000 558,600

    Lower 112,000 225,000 336,000 673,000

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