MonamiCompany uses the weighted average method to determine the cost of its inventory.Monamirecorded the following information pertaining to its inventory:

Units

Units cost

Total cost

Balance 1/1

160,000

60

P9,600,000

Sold on 1/15

140,000

Purchased on 1/31

80,000

90

7,200,000

1. What amount of inventory shouldMonamireport in its January 31, 2021statement of financial positionusing the perpetual inventory system?

Perpetual

A.

P 8,400,000

B.

P 7,000,000

C.

P 8,400,000

D.

P 7,000,000

1. What amount of inventory shouldMonamireport in its January 31, 2021 statement of financial position using the periodic inventory system?

Periodic

A.

P 7,000,000

B.

P 8,400,000

C.

P 7,500,000

D.

P 7,500,000

Problem2:

Riptide Company included the following items in its inventory on December 31, 2020:

Merchandise out on consignment, at sales price,including 25% markup on cost

P4,000,000

Goods purchased in transit, FOB destination

2,000,000

Goods held on consignment by Riptide Company

1,000,000

1. By what amount should the inventory at December 31, 2020be reduced?
2. P3,800,000
3. P2,000,000
4. P1,800,000
5. P1,000,000

Problem 3

GumamelaCompany installs replacement siding, windows, and louvered glass doors for family homes.At December 31, 2020, the balance of inventory account was P502,000, and the allowance for inventory write down was P33,000.The inventory cost and market data at December 31, 2020, are as follows:

Cost

Replacement Cost

Sales Price

NRV

Normal Profit

Aluminum siding

P89,000

P86,000

P91,500

P87,000

P5,000

Mahogany siding

94,000

92,000

93,000

85,000

7,000

Louvered glass door

125,000

135,000

129,000

111,000

10,000

Glass windows

194,000

114,000

205,000

197,000

20,000

Total

P502,000

P427,000

P518,500

P480,000

P32,000