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00. The following information is ma Product B Product C Proc P1,650,000 P1,700,000 P1,50 825,000 780,000 65 1,300,000 1,350,000 1,350,000 1,10 1,20 1,400,000

00. The following information is ma Product B Product C Proc P1,650,000 P1,700,000 P1,50 825,000 780,000 65 1,300,000 1,350,000 1,350,000 1,10 1,20 1,400,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What amount should be presented as a deduction from cost of goods sold?

IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net Realizable Value. On December 31, 2021, IJUN reported an inventory of P5,500,000 and an allowance for inventory write-down before any adjustment of P300,000. The following information is made available: Product A Product B Product C Product D Product E Sales Price P1,800,000 P1,650,000 P1,700,000 P1,500,000 P1,600,000 Cost of Goods Sold 950,000 780,000 825,000 650,000 700,000 Historical Cost 1,400,000 1,300,000 1,350,000 1,100,000 1,150,000 Replacement Cost 1,500,000 1,350,000 1,400,000 1,200,000 1,200,000 Net Realizable Value 1,250,000 1,400,000 1,000,000 1,325,000 900,000
Transcribed Image Text:IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net Realizable Value. On December 31, 2021, IJUN reported an inventory of P5,500,000 and an allowance for inventory write-down before any adjustment of P300,000. The following information is made available: Product A Product B Product C Product D Product E Sales Price P1,800,000 P1,650,000 P1,700,000 P1,500,000 P1,600,000 Cost of Goods Sold 950,000 780,000 825,000 650,000 700,000 Historical Cost 1,400,000 1,300,000 1,350,000 1,100,000 1,150,000 Replacement Cost 1,500,000 1,350,000 1,400,000 1,200,000 1,200,000 Net Realizable Value 1,250,000 1,400,000 1,000,000 1,325,000 900,000
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