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What amount should be presented as a deduction from cost of goods sold?

What amount should be presented as a deduction from cost of goods sold?

FINANCIAL ACCOUNTING
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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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 1,000,000 700,000 1,050,000 Cost of Goods Sold Historical Cost Replacement Cost Net Realizable Value 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 1,200,000 900,000
Transcribed Image Text: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 1,000,000 700,000 1,050,000 Cost of Goods Sold Historical Cost Replacement Cost Net Realizable Value 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 1,200,000 900,000
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