Intermediate Accounting Inventories - Show Complete Solution and Explain:

Question 43

For Items 43 to 44

Orange Company calculates cost of goods sold using the FIFO method for the three products that it offers. The inventory account balance was P 14,852,500 as of March 1, and the allowance for inventory write-down was P2,900. For the month of March, inventories and purchase information for the three products are provided.

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