At the end of the reporting period, the balance of inventory account of an entity was P502,000. The balance of the allowance for inventory E 2-8 - Reversal of write-down to NRV write-down was P33,000. The inventory cost and other data are as follows: (amounts in thousands) Normal Replacement Cost P 86 92 Sales Price P 91 93 NRV P 87 85 Profit P 5 Item Cost P 89 A 7 В 94 125 135 129 111 10 194 P502 114 P427 205 P518 197 P480 20 Р32 Total Required: Compute for the following: 1. Amount to be reported as Inventories in the statement of financial position. 2. Amount of reversal of write-down to NRV.
At the end of the reporting period, the balance of inventory account of an entity was P502,000. The balance of the allowance for inventory E 2-8 - Reversal of write-down to NRV write-down was P33,000. The inventory cost and other data are as follows: (amounts in thousands) Normal Replacement Cost P 86 92 Sales Price P 91 93 NRV P 87 85 Profit P 5 Item Cost P 89 A 7 В 94 125 135 129 111 10 194 P502 114 P427 205 P518 197 P480 20 Р32 Total Required: Compute for the following: 1. Amount to be reported as Inventories in the statement of financial position. 2. Amount of reversal of write-down to NRV.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
![an entity was P502,000. The balance of the allowance for inventory
At the end of the reporting period, the balance of inventory account of
E 2-8 - Reversal of write-down to NRV
write-down was P33,000. The inventory cost and other data are as
follows: (amounts in thousands)
Sales
Normal
Replacement
Cost
P 86
92
Price
P 91
93
NRV
P 87
85
Profit
P 5
Item
Cost
Р 89
A
7
В
94
C
125
135
129
111
10
194
P502
114
P427
205
P518
197
P480
20
Р32
Total
Required:
Compute for the following:
1. Amount to be reported as Inventories in the statement of financial
position.
2. Amount of reversal of write-down to NRV.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0601e8dd-20f2-421a-9a2e-0d97a11e8df7%2F26691e5d-63ad-4f14-8aa5-946ee2d11196%2Fvln3iil_processed.jpeg&w=3840&q=75)
Transcribed Image Text:an entity was P502,000. The balance of the allowance for inventory
At the end of the reporting period, the balance of inventory account of
E 2-8 - Reversal of write-down to NRV
write-down was P33,000. The inventory cost and other data are as
follows: (amounts in thousands)
Sales
Normal
Replacement
Cost
P 86
92
Price
P 91
93
NRV
P 87
85
Profit
P 5
Item
Cost
Р 89
A
7
В
94
C
125
135
129
111
10
194
P502
114
P427
205
P518
197
P480
20
Р32
Total
Required:
Compute for the following:
1. Amount to be reported as Inventories in the statement of financial
position.
2. Amount of reversal of write-down to NRV.
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