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Accounting Problems

The document provides cost of goods sold and inventory information for multiple companies and accounting problems. It includes data like beginning and ending inventory amounts, purchases, sales, returns and other relevant accounts. The required tasks involve calculating missing amounts, correcting inventory errors, and determining the value of lost inventory from a fire.

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Keitheia Quidlat
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3K views3 pages

Accounting Problems

The document provides cost of goods sold and inventory information for multiple companies and accounting problems. It includes data like beginning and ending inventory amounts, purchases, sales, returns and other relevant accounts. The required tasks involve calculating missing amounts, correcting inventory errors, and determining the value of lost inventory from a fire.

Uploaded by

Keitheia Quidlat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Problem 18

The following information pertains to the Leopoldo Valdez School Chairs:

Transportation In P172,000

Merchandise Inventory, 1/1/2021 1,200,000

Merchandise Inventory, 12/31/2021 1,900,000

Purchases 4,300,000

Purchase returns and allowances 129,000

Purchase discounts 215,000

Required: Prepare the cost of goods sold section of the income statements for the year ended Dec.
31, 2021

Problem 19

On February 18, 2021, a fire destroyed the merchandise inventory of Cristina Santiago shirts. The
following information was available form the entity’s accounting office:

Cost of goods sold P 1,260,000

Transportation In 39,600

Merchandise Inventory, 1/1/2021 300,000

Purchase Discounts 26,400

Purchase Returns and Allowances 46,200

Purchases 1,320,000

Required:

Compute the value of the lost merchandise

Problem 20

Determining the Missing Elements of the Income Statement

The partial income statements of five different companies are as follows:

1 2 3 4 5
Net Sales a d 250,000 290,000 400,000
Merchandise b 50,000 70,000 j 120,000
Inventory,
1/1/2021
Net Cost of 80,000 E G 160,000 390,000
Purchases
Goods 110,000 160,000 H K m
Available for
Sale
Merch. 40,000 f 30,000 70,000 n
Inventory,
1/31/2021
Cost of Goods c 140,000 230,000 L 380,000
Sold
Gross Profit 50,000 40,000 I 160,000 o

Required: Replace the lettered blanks with the appropriate amounts

Problem 21

The table below contains portions of the income statements of four different companies:

1 2 3 4
Net Sales 100,000 D 200,000 240,000
Beginning 15,000 12,000 g 30,000
Inventory
Net Cost of 55,000 E 125,000 95,000
Purchases
Goods available A F 145,000 j
for sale
Ending Inventory 10,000 25,000 H k
Cost of Goods B 40,000 I L
sold
Gross Profit C 90,000 85,000 130,000

Required:

Replace the lettered blanks with the appropriate amounts.

Problem 22

Effects of the Inventory Errors

Denise Javellana Flowers’ operating figures for four consecutive periods are given below:

1 2 3 4
Beginning 50,000 40,000 30,000 46,000
Inventory
Net cost of 90,000 110,000 100,000 90,000
purchases
Goods Available 140,000 150,000 130,000 136,000
for Sale
Ending inventory 40,000 30,000 46,000 32,000
Cost of Goods 100,00 120,000 84,000 104,000
Sold
Required:

If the following errors were made, compute the correct cost of goods sold for each period:

Period Error in Ending Inventory

1 Overstated by P4,000
2 Understated by P6,000
3 Overstated by P2,000

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