At year-end, Julie Company reported ending inventory at P3,000,000, and the allowance for inventory write down before any adjustment at P150,000. Product 1 800,000 900,000 1,200,000 550,000 250,000 Product 3 700,000 1,000,000 1,250,000 950,000 300,000 Product 2 Product 4 Historical cost Replacement cost Sales price Net realizable value Normal profit 1,000,000 1,200,000 1,300,000 1,100,000 150,000 500,000 600,000 1,000,000 350,000 300,000 What amount of loss on inventory writedown should be included in cost of goods sold? a. 100,000 b. 200,000 c. 400,000 d. 250,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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9. At year-end, Julie Company reported ending inventory at P3,000,000, and the allowance for inventory write down
before any adjustment at P150,000.
Product 1
Product 2
Product 3
Product 4
Historical cost
Replacement cost
Sales price
Net realizable value
Normal profit
800,000
900,000
1,200,000
550,000
250,000
1,000,000
1,200,000
1,300,000
1,100,000
150,000
700,000
1,000,000
1,250,000
950,000
300,000
500,000
600,000
1,000,000
350,000
300,000
What amount of loss on inventory writedown should be included in cost of goods sold?
a. 100,000
b. 200,000
C. 400,000
d. 250,000
Transcribed Image Text:9. At year-end, Julie Company reported ending inventory at P3,000,000, and the allowance for inventory write down before any adjustment at P150,000. Product 1 Product 2 Product 3 Product 4 Historical cost Replacement cost Sales price Net realizable value Normal profit 800,000 900,000 1,200,000 550,000 250,000 1,000,000 1,200,000 1,300,000 1,100,000 150,000 700,000 1,000,000 1,250,000 950,000 300,000 500,000 600,000 1,000,000 350,000 300,000 What amount of loss on inventory writedown should be included in cost of goods sold? a. 100,000 b. 200,000 C. 400,000 d. 250,000
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