Still on problem 2, estimate the number of days in inventory for 2020.a. 50 daysb. 60 daysc. 70 daysd. none of the above PROBLEM 2:The following selected data taken from the financial statements of Citizens, Inc. for the yearindicated, amounts, all in Philippine peso:202042,50050,000140,000750,00080,000420,000125,00020192021Accounts receivable, net40,00040,000120,000700,00045,00045,000130,000725,00050,000InventoryCurrent assetsTotal assets, netCurrent liabilities70,000400,000120,000Cash salesCredit sales (or sales sold on credit)Cost of goods soldNote: Use 360 days for 1 year.450,000131,250345,000310,000324,000

Computation of Average inventory for 2020 is as follows: Average inventory =Opening…

PROBLEM 2: The following selected data taken from the financial statements of Citizens, Inc. for the year indicated, amounts, all in Philippine peso: 2019 2020 2021 Accounts receivable, net 40,000 40,000 120,000 42,500 50,000 45,000 Inventory Current assets 140,000 750,000 80,000 420,000 125,000 324,000 45,000 130,000 725,000 50,000 450,000 131,250 345,000 Total assets, net 700,000 70,000 Current liabilities Cash sales 400,000 120,000 Credit sales (or sales sold on credit) Cost of goods sold Note: Use 360 days for 1 year. 310,000

PROBLEM 2: The following selected data taken from the financial statements of Citizens, Inc. for the year indicated, amounts, all in Philippine peso: 2019 2020 2021 Accounts receivable, net 40,000 40,000 120,000 42,500 50,000 45,000 Inventory Current assets 140,000 750,000 80,000 420,000 125,000 324,000 45,000 130,000 725,000 50,000 450,000 131,250 345,000 Total assets, net 700,000 70,000 Current liabilities Cash sales 400,000 120,000 Credit sales (or sales sold on credit) Cost of goods sold Note: Use 360 days for 1 year. 310,000

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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Ee.110.
Current Attempt in Progress Sheridan Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows: Balance, 1/1/20 Purchase, 1/15/20 Purchase, 1/28/20 Per Units Unit Price 180 $5.00 150 5.60 150 O $1155 O $800 O $881 O $871 5.50 Total $900 840 825 An end of the month (1/31/20) inventory showed that 160 units were on hand. If the company uses FIFO, what is the value of the ending inventory?
A9
The dollar-value LIFO method was adopted by Enya Corp. on January 1, 2020. Its inventory on that date was $160,000. On December 31, 2020, the inventory at prices existing on that date amounted to $140,000. The price level at January 1, 2020, was 100, and the price level at December 31, 2020, was 112. Instructions a. Compute the amount of the inventory at December 31, 2020, under the dollar-value LIFO method. b. On December 31, 2021, the inventory at prices existing on that date was $172,500, and the price level was 115. Compute the inventory on that date under the dollar-value LIFO method.
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Luke's Lamps had a beginning inventory January 2020 of $970,000. They sold goods that cost $770,000 and purchased $300,000 during the month. What should Luke expect its ending inventory balance is at the end of month (January 31, 2020)? a. $1,770,000 b. $500,000 c. $300,000 d. $1,270,000
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14.
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