Apple Corp. uses the FIFO method in calculating cost of goods sold for the three products that the company sells. At March 1, the balance of inventory account was P 14,852,500, and the allowance for inventory write down was P2,900. Inventories and purchase information concerning the three products are given for the month of March.

On March 31, the company?s suppliers reduced their selling prices from the most recent purchase prices by the following percentages: Product C, 20%; Product P, 10%; Product A, 8%. Accordingly, Apple decided to reduce its sales prices on all items by 10% effective August 1. Apple?s selling cost is 10% of sales price. Product C and P have a normal profit (after selling costs) of 30% on sales price, while the normal profit on Product A (after selling cost) is 15% of sales price.

a. The amount of inventory to be reported on the company?s statement of financial position at March 31 is?

b. The loss on inventory writedown for the month of March is?

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Units Inventory 235,000 Purchases 105,000 Purchases Sales Inventory 80,000 250,000 170,000 C Unit Cost / SP P11.50 Units 180,000 P10.00 150,000 P14.00 P15.00 200,000 130,000 P Unit Cost / SP P15.00 Units 210,000 P14.00 120,000 P17.00 200,000 130,000 A Unit Cost / SP P45.00 P43.00 P46.00 Units Inventory 235,000 Purchases 105,000 Purchases Sales Inventory 80,000 250,000 170,000 C Unit Cost / SP P11.50 Units 180,000 P10.00 150,000 P14.00 P15.00 200,000 130,000 P Unit Cost / SP P15.00 Units 210,000 P14.00 120,000 P17.00 200,000 130,000 A Unit Cost / SP P45.00 P43.00 P46.00