PROBLEM 1A flood recently destroyed many of the financial records of Val Lee Guia Manufacturing Company.Management has hired you to recreate as much financial information as possible for the month of July.You are able to find out that the company uses an average cost inventory valuation system. You alsolearnt that Val Lee Guia makes a physical count at the end of each month in order to determine monthlyending inventory values. By examining various documents, you are able to gather the followinginformation:Ending inventory at July 31 400,000 unitsTotal cost of unit available for sale in July ₱950,400Cost of goods sold during July ₱792,000Cost of beginning inventory, July 1 ₱0.35 per unitGross profit on sales for July ₱808,000July purchases:Date Units Unit CostJuly 480,000 ₱0.4011 400,000 0.4115 320,000 0.4216 400,000 0.45Requirements: Compute for the following:1. Units sold during July2. Unit cost of inventory at July 313. Number of units on hand on July 14. Value of inventory at July 31 PROBLEM 1A flood recently destroyed many of the financial records of Val Lee Guia Manufacturing Company.Management has hired you to recreate as much financial information as possible for the month of July.You are able to find out that the company uses an average cost inventory valuation system. You alsolearnt that Val Lee Guia makes a physical count at the end of each month in order to determine monthlyending inventory values. By examining various documents, you are able to gather the followinginformation:Ending inventory at July 31400,000 unitsTotal cost of unit available for sale in JulyP950,400Cost of goods sold during JulyP792,000Cost of beginning inventory, July 1P0.35 per unitGross profit on sales for JulyP808,000July purchases:DateJulyUnitsUnit Cost480,000P0.4011400,0000.4115320,0000.4216400,0000.45Requirements: Compute for the following:1. Units sold during July2. Unit cost of inventory at July 313. Number of units on hand on July 14. Value of inventory at July 31

The average cost method takes the average of the unit cost of all inventory purchases and opening…

Answered: PROBLEM 1 A flood recently destroyed…

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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PROBLEM 1
A flood recently destroyed many of the financial records of Val Lee Guia Manufacturing Company.
Management has hired you to recreate as much financial information as possible for the month of July.
You are able to find out that the company uses an average cost inventory valuation system. You also
learnt that Val Lee Guia makes a physical count at the end of each month in order to determine monthly
ending inventory values. By examining various documents, you are able to gather the following
information:

Ending inventory at July 31 400,000 units
Total cost of unit available for sale in July ₱950,400
Cost of goods sold during July ₱792,000
Cost of beginning inventory, July 1 ₱0.35 per unit
Gross profit on sales for July ₱808,000

July purchases:

Date Units Unit Cost
July 480,000 ₱0.40
11 400,000 0.41
15 320,000 0.42
16 400,000 0.45

Requirements: Compute for the following:
1. Units sold during July
2. Unit cost of inventory at July 31
3. Number of units on hand on July 1
4. Value of inventory at July 31

PROBLEM 1
A flood recently destroyed many of the financial records of Val Lee Guia Manufacturing Company.
Management has hired you to recreate as much financial information as possible for the month of July.
You are able to find out that the company uses an average cost inventory valuation system. You also
learnt that Val Lee Guia makes a physical count at the end of each month in order to determine monthly
ending inventory values. By examining various documents, you are able to gather the following
information:
Ending inventory at July 31
400,000 units
Total cost of unit available for sale in July
P950,400
Cost of goods sold during July
P792,000
Cost of beginning inventory, July 1
P0.35 per unit
Gross profit on sales for July
P808,000
July purchases:
Date
July
Units
Unit Cost
480,000
P0.40
11
400,000
0.41
15
320,000
0.42
16
400,000
0.45
Requirements: Compute for the following:
1. Units sold during July
2. Unit cost of inventory at July 31
3. Number of units on hand on July 1
4. Value of inventory at July 31

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