PROBLEM 9 You were assigned to audit the inventories of COLDPLAY Corp. for the period ended...

 

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PROBLEM 9 You were assigned to audit the inventories of COLDPLAY Corp. for the period ended December 31, 2024. In your review of the client's control over inventory, you ascertained that the controls are effective thus you allowed the client to render physical count at an interim date, October 31, 2024. The result of the count as well as other relevant information as of October 31, 2024 and as of December 31 2024, respectively, were as follows: Inventory, per count (October 31, 2024). Purchases per books........ Purchase discount Freight in............ Purchase returns and allowances ************************************************************ Sales ........... Sales discount........... Sales returns and allowances... Employee discounts. Normal breakages. ****************************** ****************** ***** ***** *********************************** ********************************** October 31 550,000 2,450,000 45,000 60,000 70,000 4,765,000 200,000 300,000 Additional information: • Deliveries in transit invoiced at P75,000 were delivered to customers on October 31 and recorded as sales upon delivery. Freight term, however, is FOB destination. 44) What is the cost of sales for the last two months ended December 31? A. 1,037,500 B. 937,500 C. 895,500 45) What is the estimated cost of sales for the entire year of 2024? A. 2.995,500 B. 3,005,500 • Goods invoiced at P90,000 were in transit as of October 31 and were received on November 3 from a supplier. The said invoice was recorded in November. Freight term however is FOB shipping point. 150,000 50,000 • Merchandise received in December invoiced at P100,000 were damaged while in transit (FOB SP) from s supplier. The same were sold at a 10% mark up based on cost. Questions: Based on the above data and result of your audit, answer the following: 43) What is the gross profit percentage based on sales for 10 months ended October 31? A. 45% B. 50% C. 55% 46) What is the cost of ending inventories as of December 31, 2024? A. 445,600 B. 447,500 • Physical count as of October 31, 2024 included all merchandise on hand before any deliveries were made on the same date. Inventory per count on December 31, 2023 was at P450,000. C. 3,232,500 December 31 3,410,000 70,000 90,000 C. 500,500 100,000 6,750,000 300,000 375,000 150,000 50,000 D. 60% D. 885,500 D. 3,332,500 D. 515,700 PROBLEM 9 You were assigned to audit the inventories of COLDPLAY Corp. for the period ended December 31, 2024. In your review of the client's control over inventory, you ascertained that the controls are effective thus you allowed the client to render physical count at an interim date, October 31, 2024. The result of the count as well as other relevant information as of October 31, 2024 and as of December 31 2024, respectively, were as follows: Inventory, per count (October 31, 2024). Purchases per books........ Purchase discount Freight in............ Purchase returns and allowances ************************************************************ Sales ........... Sales discount........... Sales returns and allowances... Employee discounts. Normal breakages. ****************************** ****************** ***** ***** *********************************** ********************************** October 31 550,000 2,450,000 45,000 60,000 70,000 4,765,000 200,000 300,000 Additional information: • Deliveries in transit invoiced at P75,000 were delivered to customers on October 31 and recorded as sales upon delivery. Freight term, however, is FOB destination. 44) What is the cost of sales for the last two months ended December 31? A. 1,037,500 B. 937,500 C. 895,500 45) What is the estimated cost of sales for the entire year of 2024? A. 2.995,500 B. 3,005,500 • Goods invoiced at P90,000 were in transit as of October 31 and were received on November 3 from a supplier. The said invoice was recorded in November. Freight term however is FOB shipping point. 150,000 50,000 • Merchandise received in December invoiced at P100,000 were damaged while in transit (FOB SP) from s supplier. The same were sold at a 10% mark up based on cost. Questions: Based on the above data and result of your audit, answer the following: 43) What is the gross profit percentage based on sales for 10 months ended October 31? A. 45% B. 50% C. 55% 46) What is the cost of ending inventories as of December 31, 2024? A. 445,600 B. 447,500 • Physical count as of October 31, 2024 included all merchandise on hand before any deliveries were made on the same date. Inventory per count on December 31, 2023 was at P450,000. C. 3,232,500 December 31 3,410,000 70,000 90,000 C. 500,500 100,000 6,750,000 300,000 375,000 150,000 50,000 D. 60% D. 885,500 D. 3,332,500 D. 515,700

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