PROBLEM 7 The following information was provided by the bookkeeper of COW, INC.: 1. Sales for the month of June totaled 286,000 units. 2. The following purchases were made in June: DATE June 4 June 8 June 11 June 24 1. How many units were on hand on June 30? a. 80,000 b. 177,500 QUANTITY 50,000 3. There were 108,500 units on hand on June 1 with a total cos of P1,450,000. Cow, Inc. uses a periodic FIFO costing system. The company's gross income for June was P2,058,750. a. P1,025,000 b. P1,016,230 62,500 75,000 70,000 2. What is FIFO cost of the company's inventory on June 30? c. P988,000 d. P1,069,124 3. What is the total cost of goods sold in June? a. P3,632,200 b. P3,617,900 quantities is a. Performing a gross profit test. b. Testing inventory extensions. c. 28,500 d. 149,000 UNIT COST P13.000 12.50 12.000 12.40 c. P3,580,126 d. P3,661,250 4. The 285,000 units sold in June had a unit selling price of a. P20 c. P12.70 b. P13 d. P7.20 5. An essential procedural control to ensure the accuracy of the recorded inventory c. Calculating unit costs and valuing obsolete or damaged inventory items in accordance with inventory policy. d. Establishing a cutoff for goods received and shipped.
PROBLEM 7 The following information was provided by the bookkeeper of COW, INC.: 1. Sales for the month of June totaled 286,000 units. 2. The following purchases were made in June: DATE June 4 June 8 June 11 June 24 1. How many units were on hand on June 30? a. 80,000 b. 177,500 QUANTITY 50,000 3. There were 108,500 units on hand on June 1 with a total cos of P1,450,000. Cow, Inc. uses a periodic FIFO costing system. The company's gross income for June was P2,058,750. a. P1,025,000 b. P1,016,230 62,500 75,000 70,000 2. What is FIFO cost of the company's inventory on June 30? c. P988,000 d. P1,069,124 3. What is the total cost of goods sold in June? a. P3,632,200 b. P3,617,900 quantities is a. Performing a gross profit test. b. Testing inventory extensions. c. 28,500 d. 149,000 UNIT COST P13.000 12.50 12.000 12.40 c. P3,580,126 d. P3,661,250 4. The 285,000 units sold in June had a unit selling price of a. P20 c. P12.70 b. P13 d. P7.20 5. An essential procedural control to ensure the accuracy of the recorded inventory c. Calculating unit costs and valuing obsolete or damaged inventory items in accordance with inventory policy. d. Establishing a cutoff for goods received and shipped.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please use moving average in answering the questions (disregard FIFO)
Transcribed Image Text:PROBLEM 7
The following information was provided by the bookkeeper of COW, INC.:
1. Sales for the month of June totaled 286,000 units.
2. The following purchases were made in June:
DATE
June 4
June 8
June 11
June 24
1. How many units were on hand on June 30?
a. 80,000
b. 177,500
QUANTITY
50,000
3. There were 108,500 units on hand on June 1 with a total cos of P1,450,000.
Cow, Inc. uses a periodic FIFO costing system. The company's gross income for June was
P2,058,750.
a. P1,025,000
b. P1,016,230
62,500
75,000
70,000
2. What is FIFO cost of the company's inventory on June 30?
c. P988,000
d. P1,069,124
3. What is the total cost of goods sold in June?
a. P3,632,200
b. P3,617,900
quantities is
a. Performing a gross profit test.
b. Testing inventory extensions.
c. 28,500
d. 149,000
UNIT COST
P13.000
12.50
12.000
12.40
c. P3,580,126
d. P3,661,250
4. The 285,000 units sold in June had a unit selling price of
a. P20
c. P12.70
b. P13
d. P7.20
5. An essential procedural control to ensure the accuracy of the recorded inventory
c. Calculating unit costs and valuing obsolete or damaged inventory items in
accordance with inventory policy.
d. Establishing a cutoff for goods received and shipped.
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