sold? IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net Realizable Value. On December 31, 2021, IJUN reported an inventory of P5,500,000 and an allowance for inventory write-down before any adjustment of P300,000. The following information is made available: Product A Product B Product C Product D Product E Sales Price Cost of Goods Sold P1,800,000 P1,650,000 P1,700,000 P1,500,000 P1,600,000 825,000 1,050,000 1,400,000 1,000,000 950,000 780,000 1,200,000 1,275,000 1,500,000 1,350,000 1,175,000 1,400,000 650,000 925,000 1,200,000 1,325,000 700,000 Historical Cost Replacement Cost Net Realizable Value 1,050,000 1,200,000 900,000
sold? IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net Realizable Value. On December 31, 2021, IJUN reported an inventory of P5,500,000 and an allowance for inventory write-down before any adjustment of P300,000. The following information is made available: Product A Product B Product C Product D Product E Sales Price Cost of Goods Sold P1,800,000 P1,650,000 P1,700,000 P1,500,000 P1,600,000 825,000 1,050,000 1,400,000 1,000,000 950,000 780,000 1,200,000 1,275,000 1,500,000 1,350,000 1,175,000 1,400,000 650,000 925,000 1,200,000 1,325,000 700,000 Historical Cost Replacement Cost Net Realizable Value 1,050,000 1,200,000 900,000
Chapter10: Inventory
Section: Chapter Questions
Problem 13PB: Company Edgar reported the following cost of goods sold but later realized that an error had been...
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Question
![What amount should be presented as a deduction from cost of goods
sold?
IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net Realizable
Value. On December 31, 2021, IJUN reported an inventory of P5,500,000 and an allowance for inventory
write-down before any adjustment of P300,000. The following information is made available:
Product A Product B
Product C Product D
Product E
Sales Price
P1,800,000 P1,650,000 P1,700,000 P1,500,000 P1,600,000
825,000
1,050,000
1,400,000
1,000,000
Cost of Goods Sold
950,000 780,000
1,200,000 1,275,000
1,500,000 1,350,000
1,175,000 1,400,000
650,000
925,000
1,200,000
1,325,000
700,000
1,050,000
1,200,000
Historical Cost
Replacement Cost
Net Realizable Value
900,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc01a3c17-09b4-4283-b6b5-01cddbdae950%2F1db34c4c-906e-45ec-af7d-c696b217538e%2Fh1ahspp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:What amount should be presented as a deduction from cost of goods
sold?
IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net Realizable
Value. On December 31, 2021, IJUN reported an inventory of P5,500,000 and an allowance for inventory
write-down before any adjustment of P300,000. The following information is made available:
Product A Product B
Product C Product D
Product E
Sales Price
P1,800,000 P1,650,000 P1,700,000 P1,500,000 P1,600,000
825,000
1,050,000
1,400,000
1,000,000
Cost of Goods Sold
950,000 780,000
1,200,000 1,275,000
1,500,000 1,350,000
1,175,000 1,400,000
650,000
925,000
1,200,000
1,325,000
700,000
1,050,000
1,200,000
Historical Cost
Replacement Cost
Net Realizable Value
900,000
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