DUDUTLANG produces and sells legitimate drugs. BTC, ADA, AXS and SLP. DUDUTLANG is currently determining the value to be presented in the statement of financial position as of December 31, 2021. The following information were provided by DUDUTLANG: BTC ADA AXS SLP Est. Selling Price P30,000 P110 P7,000 P4 Est. Selling Costs 10,200 50 2,500 1 Est. Costs to Complete 3,000 12 1,200 1 Unit Cost 17,000 45 3,450 2 Units 100 12,000 1,500 200,500 1. How much should be presented as inventory in the statement of financial position as of December 31, 2021? 2. Assuming the Company has P25,000,000 in sales and P19,800,000 in cost of goods sold. How much would be the gross profit if the Company uses the direct method for accounting inventory losses?
DUDUTLANG produces and sells legitimate drugs. BTC, ADA, AXS and SLP. DUDUTLANG is currently determining the value to be presented in the statement of financial position as of December 31, 2021. The following information were provided by DUDUTLANG: BTC ADA AXS SLP Est. Selling Price P30,000 P110 P7,000 P4 Est. Selling Costs 10,200 50 2,500 1 Est. Costs to Complete 3,000 12 1,200 1 Unit Cost 17,000 45 3,450 2 Units 100 12,000 1,500 200,500 1. How much should be presented as inventory in the statement of financial position as of December 31, 2021? 2. Assuming the Company has P25,000,000 in sales and P19,800,000 in cost of goods sold. How much would be the gross profit if the Company uses the direct method for accounting inventory losses?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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DUDUTLANG produces and sells legitimate drugs. BTC, ADA, AXS and SLP. DUDUTLANG is currently determining the value to be presented in the
| BTC | ADA | AXS | SLP | |
| Est. Selling Price | P30,000 | P110 | P7,000 | P4 |
| Est. Selling Costs | 10,200 | 50 | 2,500 | 1 |
| Est. Costs to Complete | 3,000 | 12 | 1,200 | 1 |
| Unit Cost | 17,000 | 45 | 3,450 | 2 |
| Units | 100 | 12,000 | 1,500 | 200,500 |
1. How much should be presented as inventory in the statement of financial position as of December 31, 2021?
2. Assuming the Company has P25,000,000 in sales and P19,800,000 in cost of goods sold. How much would be the gross profit if the Company uses the direct method for accounting inventory losses?
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