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Year-End Inventory Assessment Data

The document presents three accounting scenarios involving inventory calculations for different companies: Amiable Company, Lunar Company, and Ram Company. Each scenario provides specific data about items in various stages of inventory and asks for the total amount to be reported as inventory, with multiple-choice answers provided. The document focuses on the principles of inventory accounting and the treatment of different inventory items.

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287 views1 page

Year-End Inventory Assessment Data

The document presents three accounting scenarios involving inventory calculations for different companies: Amiable Company, Lunar Company, and Ram Company. Each scenario provides specific data about items in various stages of inventory and asks for the total amount to be reported as inventory, with multiple-choice answers provided. The document focuses on the principles of inventory accounting and the treatment of different inventory items.

Uploaded by

21100541-student
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Intermediate Accounting 1: Inventories

(Activity)
1. Amiable Company provided the following data:
Items counted in the bodega 4,000,000
Items included in the count specifically segregated per sale contract 100,000
Items in receiving department, returned by customer, in good condition 50,000
Items ordered and in the receiving department 400,000
Items ordered, invoice received but goods not received.
Freight is on account of seller. 300,000
Items shipped today, invoice mailed. FOB shipping point 250,000
Items shipped today, invoice mailed, FOB destination 150,000
Items currently being used for window display 200,000
Items on counter for sale 800,000
Items in receiving department, refused because of damage 180,000
Items included in count, damaged and unsalable 50,000
Items in the shipping department 250,000
What amount should be reported as inventory?
A. 5,700,000
B. 6,000,000
C. 5,800,000
D. 5,150,000

2. Lunar Company included the following items in inventory:


Materials 1,400,000
Advance for materials ordered 200,000
Goods in process 650,000
Unexpired insurance on inventory 60,000
Advertising catalogs and shipping cartons 150,000
Finished goods in factory 2,000,000
Finished goods in entity-owned retail store, including 50% profit on cost 750,000
Finished goods in hands of consignees including 40% profit on sales 400,000
Finished goods in transit to customers, shipped FOB destination at cost 250,000
Finished goods out on approval, at cost 100,000
Unsalable finished goods, at cost 50,000
Office supplies 40,000
Materials in transit, shipped FOB shipping point, excluding freight of P30,000 330,000
Goods held on consignment, at sales price, cost P150,000 200,000
What amount should be reported as inventory?
A. 5,375,000
B. 5,500,000
C. 5,540,000
D. 5,250,000

3. Ram Company provided the following information at the end of current year.
Finished goods in storeroom, at cost 2,000,000
Finished goods in transit, FOB shipping point 250,000
Finished goods held by salesmen, at selling price, cost, P100,000 200,000
Goods in process, at cost 900,000
Materials 1,000,000
Materials in transit, FOB destination 50,000
Defective materials returned to suppliers for replacement 100,000
Shipping supplies 20,000
Gasoline and oil for testing finished goods 100,000
Machine lubricants 300,000
What amount should be reported as inventory?
A. 4,400,000
B. 4,500,000
C. 4,750,000
D. 4,100,000

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