Cost			4,000,000
Net realizable value			3,700,000
a. 7,000,000		c. 7,300,000
b. 7,100,000		d. 7,200,000

17. Tiffany Company is a wholesaler of photography equipment. The entity used the periodic average cost method to account for inventory. The activity for the inventory of cameras during July is shown below: What is the ending inventory on July 31?

Units Unit Cost

July 1 Inventory 20,000 36.00

7 Purchase 30,000 37.00

12 Sale 36,000

21 Purchase 50,000 37.88

22 Sale 38,000

29 Purchase 16,000 38.11

a. 1,534,000 c. 1,587,360

b. 1,569,120 d. 1,594,640

18. Daenerys Company recorded the following data pertaining to raw material Y during January of the current year. What is the moving average unit cost of the inventory on January 31?

				Units
Date		Received		Cost	Issued	On Hand
1/1 Inventory				200		8,000
1/8 Issue					4,000	4,000
1/20 Purchase		12,000		240		16,000
a. 220		c. 230
b. 224		d. 240

19. The unadjusted physical inventory of Liberty Company at Dec. 31, 2014 was

P3,000,000. Other information follows: 1. Goods were received and recorded on Jan. 2, 2015 with cost of P180,000. Information revealed that the term of the shipment is FOB shipping point and these goods were shipped on Dec. 29, 2014. 2. Merchandise in the warehouse costing P240,000 was billed to the customer FOB shipping point on Dec. 29, 2014. These were excluded from the inventory but these were shipped on Jan. 3, 2015. How much should Liberty report as inventory in its Dec. 31, 2014 statement of financial position?

a. 3,000,000 c. 3,240,000

b. 3,180,000 d. 3,420,000

20. On Oct. 1, 2014, Saint Company consigned 50 sewing machines to Matthew Company for sale at P20,000 each and paid P40,000 in transportation cost. On

Dec. 31, 2014, Matthew reported the sale of 30 sewing machines and remitted P510,000. The remittance was net of the agreed 15% commission. What amount should Saint recognize as consignment sales revenue for 2014?

a. 350,000 c. 510,000

b. 470,000 d. 600,000