156 7. Assuming that Anthony does not maintain perpetual inventory records, what should be the cost of inventory at January 31, 2018, using the average cost inventory costing method rounded to the nearest peso? P19,505 b. P19,306 c. P19, 702 d. P18, 704 8. The data given below relate to Material XXX used by Jose Shoes Factory, Inc. Beginning balance 480 at P4.80 each Purchase Order 30 600 at P4.90 each Requisition 46 175 Requisition 49 225 Requisition 50 280 Purchase Order 96 400 at P4.95 each Requisition 52 310 Returned Material Report 24 (from Requisition 50) 20 What is the cost of ending inventory using the FIFO costing method? a. P2,519.00 b. P2, 421.00 c. P2,500.00 d. P2,400.00 9. Based on the data given in No. 8, what is the cost of ending inventory using the moving average inventory costing method? a. P2, 499.59 b. P2, 450.59 c. P2, 459.60 d. P2,949.60Controlling and Costing Materials Inventory 157 10. The following data relates to the materials inventory of the Manual Garments Factory: Units Unit Costs Net Realizable Group I Value Per Unit Material AA 460 Material BB P140 830 P130 Group II 85 90 Material CC 1,290 Material DD 120 580 145 65 55 What is the value of the inventory if the lower of cost or net realizable value method is applied to the individual items? a. P317,050 b. P237,500 c. P327,050 d. P371,050 11. Based on the data given in No. 10, what is the value of the inventory if the lower of cost or net realizable value rule is applied to the inventory as a whole? a. P327,450 b. P353,450 C. P307,450 d. P327,050 12. Using the same data in No. 10, what is the value of the inventory if the lower of cost or net realizable value rule is applied to the inventory by groups? a. P327,000 b. P372,000 c. P218,950 d. P317,000Chapter 4 158 18. Maria Plastic Company presented the following data for the month of May 2018: P129,640 Finished Goods, May 1, 2018 142,840 Finished Goods, May 31, 2018 395,440 Cost of Goods Manufactured 9,740 Loss on inventory write-down Compute the cost of goods sold to be shown in the statement of comprehensive income for the month ended May 31, 2018: a. P372,500 b. P391,980 c. P327,500 d. P372,000 14. The following data pertain to Alpha Company for the month of June 2018: Finished Goods, June 1, 2018 P290,540 Finished Goods, June 30, 2018 276,760 Cost of Goods Manufactured 805,820 Recovery from inventory write-down 10,720 Determine the cost of goods sold to be shown in the statement of comprehensive income of Alpha Company for the month of June 2018: a. P808,880 b. P880,880 c. P830,320 d. P808,080 15. The Big Balls Company has decided to value its materials inventory at the lower of cost or net realizable value. The Materials account has an ending balance of P110,492. The estimated selling price and selling expenses are P134,315 and P26,855 respectively. or NRV? What is the journal entry to value the inventory at the lower of costNumber 15 - Continued a. Loss on inventory write-down Allowance for inventory write-down 3,032 3,032 b. Loss on inventory write-down Inventory 23,823 23,823 c. Allowance for inventory write-down Gain on inventory write-down 3,032 3,032 d. Loss on inventory write-down Inventory 3,032 3,032 16. On December 31, 2018, the Materials account for the Mars Manufacturing Company has a balance of P296,369. The company has been using the lower of cost or net realizable value method for several years. The Allowance for Inventory write-down account has a balance of P8,930. The net realizable value of the materials on December 31, 2018 is P291,250. On December 31, 2018, what is the entry to adjust the value of the materials at the lower of cost or net realizable value? a. Allowance for inventory write-down 3,811 Recovery from inventory write-down 3,811 b. Loss on inventory write-down 5,119 Allowance for inventory write-down 5,119 c. Allowance for inventory write-down 3,821 3,821 Inventory 5,119 d. Allowance for inventory write-down 5, 119 Recovery from inventory write-down