Problem 1. On May 1, the inventory account had a balance of P40,000. During the first few days of May, the following transactions occurred. May 2- Purchased merchandise on credit from Gay Company, P60,000. 31- Sold merchandise on account, P100,000. The cost of the merchandise was P60,000. Required: a. Prepare entries in general journal form to record the above transactions under perpetual and periodic systems of accounting for inventories. b. Compute the cost of sales and ending inventory as of May under both methods Problem II. At the close of its fiscal year on March 31, 2018. Gren Industries, Inc. was in the process of relocating its plant. This resulted in some confusion relating to the inventory cutoff, as indicated by the following: (1) Merchandise on hand costing P1,794 was included in the inventory although the purchase invoice was not recorded until April 12, 2018. (2) Merchandise shipped on April 1, 2018, was included in inventory--the cost of this merchandise was P2,219, and the sale was recorded as P3,138 on March 31, 2018. (3) Merchandise costing P12,150 was included in the inventory although it was shipped to a customer on March 31, 2018, FOB shipping point; the company recorded the sale of P19,246 on that date. Merchandise costing P1,820 was not counted. (5) Merchandise in transit (shipped to the company FOB destination) was recorded as a purchase as of April 2, 2018, and its cost of P17,287 was not included in the March 31, 2018, inventory. Assuming that the company uses the periodic system and that the books for the fiscal year are still open, provide the necessary correcting entries Problem III You were furnished the following data relative to Product X of Diana Sales Center: Balance : March 1 500 units @P2 10 500 units @ P4 12 28 Units on hand 600 units Required: Compute the cost of ending inventory and cost of sales using the following methods; a FIFO b. Specific Identification (200 units come from March 1 and 400 units come from March 10) c. Weighted Average 350 units @ P6 150 units @ P8 Problem IV. The following data pertains to product B of MNO Corporation as of January 1, 2018; January Balance 500 units @ P2 Purchases 600 units @ P3 800 units Sales Purchases 400 units @ P4 Purchases 400 units @ P5 Sales 600 units Purchases 300 units @ P6 Sales 400 units 1 5 10 13 20 24 30 31