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 RealizableValue. On December 31, 2021, IJUN reported an inventory of P5,500,000 and an allowance for inventorywrite-down before any adjustment of P300,000. The following information is made available:Product A Product BProduct CProduct DProduct ESales PriceP1,800,000 P1,650,000 P1,700,000 P1,500,000 P1,600,000825,0001,050,0001,400,0001,000,000700,0001,050,000Cost of Goods SoldHistorical CostReplacement CostNet Realizable Value950,000 780,0001,200,000 1,275,0001,500,000 1,350,0001,175,000 1,400,000650,000925,0001,200,0001,325,0001,200,000900,000

The GAAP principles require that the inventory should be valued at the lessor amount of its laid…

Answered: What amount should be presented as a…

Business

Accounting

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units, give or…

A: The net income is the net profit of the company earned during the period. The net income includes…

Q: The possible answers for option D are:Cost of Goods SoldDepreciation ExpenseEarned RevenueIncome Tax…

A: Step1:The likely income statement account that will be used to adjust unearned revenue (balance…

Q: How is total cost of goods sold and the total amount billed to customers calculated?

A: A job cost sheet is a sheet which is used to record the manufacturing costs .

Q: Compute(a)the cost of goods purchased and (b) the cost of goods sold

A: Cost of Goods Purchased is the net cost of merchandise acquired. It is that situation when business…

Q: Which accounting technique gives the most relevant information (net cost or gross invoice price)

A: The most relevant information of accounting technique will be explained:

Q: 2012; the company sells just one product: Units Unit Cost Beginning Inventory 200 $50 Purchases:…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

Q: Which of the following accounts is an example of a contra-asset? A) Cost of Goods Sold B)Sales…

A: CONTRA ASSETS contra asset account is a type of asset account where the account balance may…

Q: What is Cost of Goods Sold (COGS) and how is it calculated? What is Gross Profit and how is it…

A: The income statement is prepared to record the revenues and expenses of the current period.

Q: In what situation will the unrealized holding gain or losson inventory be reported in income?

Q: Deductions from gross income are subtracted from gross income to derive taxable net income. TRUE OR…

A: Gross income is the aggregate total income that is received by a taxpayer that is not tax-exempt…

Q: Define cost of goods sold. How is it computed? What two financial reports does it impact and how?

A: Cost of goods sold or COGS is the direct cost of the products sold/manufactured by the entity. It…

Q: What is the difference between a traditional format income statement and a contribution format…

Q: An example of an expense classifi cation by function is: C . cost of goods sold.

A: Expenses are either classified by nature or by function.

Q: Who is the owner of goods on consignment? (Please give full explanation and please avoid…

A: In the consignment basis goods are sent by the consignor to the consignee to sell the goods and in…

Q: What is supposed to be credited in utilities expense

A: Solution Concept When an expense has been incurred but not paid ,such expense needs to be recorded…

Q: When does a consignor typically recognize revenue for a consignment sale?

A: Meaning of Consignment Sale Consignment Sale is refer as the arrangement of trade where the seller…

Q: Why do you add transportation in and do not deduct delivery expense when determining the cost of…

A: For a buyer, the cost of merchandise purchased is considered as a net cost incurred to buy the…

Q: What's the difference between the cost to inventory and the cost of goods sold?

A: Cost of inventory refers to the cost of goods purchased. It is those costs which includes cost of…

Q: What are the main differences between a perpetual system and a periodic system? In your…

A: In accounting, there may be different methods to record a financial transaction. The selling and…

Q: How do calculate the Cost of Goods Sold without the beginning inventory nor the ending inventory??

A: Cost of goods sold is the total costs incurred on those units of goods or products which are sold by…

Q: You are provided with the following information for Concord Inc. for the month ended June 30, 2020.…

A: SOLUTION- COST OF GOODS AVAILABLE FOR SALE DATE…

Q: allocation of income or loss to have economic effect

A: Income or loss is the net result of operational activities of a business conducted during a…

Q: How to compute the amount of net income or net loss

A: Net Income or net loss is computed by preparing the income statement.The first step in computing the…

Q: net income

A: Net income is stated in the income statement of the company that is calculated by deducting the…

Q: Which of the following would calculate Net Income or Net Loss? O Gross Profit - Operating Expenses O…

A: Net income is calculated as the Sales-Cost of goods sold-Operating expense Where Gross profit is…

Q: 19. Using the information below, calculate gross profit for the period: Sales revenues for the…

A: The gross profit is computed by deducting the cost of goods sold from the sales revenue. The cost of…

Q: What is the difference between gross income and net income?

A: Gross income refers to the income or profit remaining after all the production related expenses are…

Q: The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following…

A: Gross income is direct income of a business generated from direct revenues of the company. It is an…

Q: According to the historical cost system, what is the objective of accounting and the role of profit?…

A: Historical cost system believes that the asset needs to be recognised on the basis of cost at the…

Q: Cost of Goods Sold is classified as which type of account? a. Asset b. Liability c. Revenue d.…

A: Accounts are classified as : Assets account Liabilities account Expenses account Revenue account…

Q: What is the difference between a contribution approach income statement and a traditionalapproach…

A: Contribution Approach Income Statement: Under this approach, contribution amount is the main focus…

Q: How should you compute the number that appears as "cost of good sold" in a common-size income…

A: Lets understand the basics.There are two type of analysis are made.(1) Verticle analysis(2)…

Q: What is meant by subjective discretionary income?How does it affect purchases?

A: Consumer is dealing with different types of income and expenses. All these would be considered on…

Q: Which travel expenses are deductible and which ones are not? Provide reasons for both deductible and…

A: The travel expenses are costs usually related to the purpose of traveling for business-related…

Q: Net net profit is computed in the

A: Net profit in computed in the Income statement or profit and loss statement . The format of the…

Q: Interest revenue need not be added to the gross income to compute for the total income.

A: Gross income and net income are two concepts associated with the accounting that helps to identify…

Q: purchase discounts and purchase returns and allowances included in the calculation of cost of goods…

A: Discounts are of three types trade discounts, cash discounts, and purchases discounts. A trade…

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
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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How much is the Net Purchases? how much is the Net Cost of Goods Purchased? how much is the Cost of Sales?
What is the definition of gross income? “Gross income includes all income unless….”
Which of the following costs is a nonlease component for the lessee? taxes maintenance insurance
What is the difference of net income and gross income?
Discuss the treatment of imported goods for (a) Transit and (b) Transshipment, in terms of liability for payment of duties and taxes.
How does accrued but uncollected revenue affect the bal-ance sheet?
What will be the correct answer for weight average cost method for ending inventory and cost of goods sold?
How is cost of goods sold classified in the financial statements?a. As a revenueb. As an expensec. As an assetd. As a liability
What is a consignment arrangement? Explain the accounting treatment of goods held on consignment.
What costs should be included in the measurement of cost merchandise inventory?