Problem 1:

Monami Company uses the weighted average method to determine the cost of its inventory. Monami recorded 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 should Monami report in its January 31, 2021 statement of financial position using 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

2. What amount of inventory should Monami report 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