Abagat, Ma. Jamil G.
BSA-1
AC13
CHAPTER 13
Problem 13-1
Answer: A
Solution:
Inventory on January 1
Purchases
Freight in
Total
Less: Purchase return
Goods available for sale
Less: Cost of goods sold (4,500,000 x 60%)
Inventory on March 31
650,000
3,200,000
50,000
3,250,000
75,000
Problem 13-2
Answer: A
Solution:
Inventory on January 1
Purchases
Purchase return
Freight in
Goods available for sale
Cost of goods sold (3,370,000 x 70%)
Inventory on December 31
Physical inventory -December 31
Cost of missing inventory
650,000
2,300,000
(80,000)
60,000
2,930,000
(2,359,000)
571,000
420,000
151,000
Problem 13-3
Answer: C
Solution:
Sales
Sales returns
Net sales
5,600,000
(400,000)
5,200,000
Cost of goods sold (5,200,000 x 75%)
3,900,000
Problem 13-4
Answer: C
Solution:
Inventory on January 1
1,100,000
3,175,000
3,825,000
2,700,000
1,125,000
Net Purchases
Goods available for sale
Cost of goods sold (7,280,000/130%)
Inventory on September 30
Realizable value of damaged goods
Fire loss on inventory
6,000,000
7,100,000
(5,600,000)
1,500,000
100,000
140,000
Problem 13-5
1. Answer: A
Solution:
Beginning inventory
Purchases
Freight in
Purchases returns and allowances
Purchases discounts
Cost of goods available for sale
5,000,000
26,000,000
2,000,000
(3,500,000)
(1,500,000)
28,000,000
2. Answer: B
Solution:
Sales
Sales returns
Net sales
Multiply by cost ratio
Cost of goods sold
40,000,000
(3,000,000)
37,000,000
60%
22,200,000
3. Answer: C
Solution:
Cost of goods available for sale
Cost of goods sold
Ending inventory
Physical count
Cost of goods out for consignment
Cost of inventory shortage
28,000,000
(22,200,000)
5,800,000
(4,000,000)
(600,000)
1,200,000
Problem 13-6
Answer: B
Solution:
Sales- 2019
Cost of good sold:
Net purchases- 2019
Less: Inventory
6,000,000
5,500,000
1,000,000
4,500,000
Gross income
Rate in 2019 (1,500,000/,000,000) = 25%
Inventory - January 2020
Net purchases - 2020
Good available for sale
Less: Cost of good sold (9,000,000 x 70%)
Inventory- December 31, 2020
Less: Undamaged merchandise (500,000 x 70%)
Realizable vale of damaged merchandise
Fire loss
1,500,000
Rate in 2020 (25% + 5%) = 30%
1,000,000
2,500,000
8,500,000
6,300,000
2,200,000
350,000
10,000
Problem 13-7
Answer: D
Solution:
Cost of good sold (7,000,000 - 1,400,000)
Multiply by
Sales
Less: Collection
Accounts receivable
360,000
1,840,000
5,600,000
140%
7,840,000
4,000,000
3,840,000
Problem 13-8
Answer: C
Solution:
Average gross profit rate (2,250,000/9,000,000) 25%
Inventory - January 1
Net purchases - 2020
Good available for sale
Less: Cost of good sold (5,600,000 x 75%)
Inventory- September 30
Less: Undamaged merchandise (500,000 x 70%)
Realizable vale of damaged merchandise
Fire loss
Problem 13-9
Answer: A
Solution:
Sales - 2019
Cost of good sold:
660,000
4,240,000
4,900,000
4,200,000
700,000
45,000
25,000
70,000
630,000
7,500,000
Beginning inventory
Purchases
Freight in
Purchases discount
Purchases returns
Purchases allowances
Goods available
Ending inventory
Gross income
1,260,000
6,450,000
350,000
(90,000)
(120,000)
(20,000)
7,830,000
2,355,000
Beginning inventory- 2020
Purchases
Freight in
Purchases discount
Purchases returns
Purchases allowances
Goods available
Cost of goods sold-2020 (4,500,000 x 73%)
Ending inventory
Problem 13-10
Answer: B
Solution:
Inventory - January 1
Net purchases - 2020
Good available for sale
Less: Cost of good sold
Sales
Less: sales returns
Net sales
Cost of good sold (7,800,000 x 70%)
Estimated value of ending inventory’
Less: Cost of inventory not stolen
Estimated cost of stolen inventory
Problem 13-11
Answer: B
Solution:
Sales
Cost of goods sold (9,600,000/125%)
Gross profit
5,475,000
2,025,000
2,355,000
3,180,000
220,000
( 45,000)
(40,000)
(15,000)
5,655,000
3,285,000
2,370,000
1,200,000
4,960,000
6,160,000
7,880,000
80,000
7,800,000
5,460,000
700,000
100,000
600,000
9,600,000
7,680,000
1,920,000
Problem 13-12
Answer: 1.) A
2.) A
3.) D
Average rate= 3,200,000/ 8,000,000 = 40%
Inventory - January 1
Purchases - (1,600,000 / 500,000 - 400,000)
Good available for sale
Less: Cost of good sold
Collections
Accounts receivable December 31
Accounts receivable January 1
Sales
Cost of good sold (2,600,000 X 60%)
Inventory - December 1
Less: Goods on consignment (200,000 x 60%)
Salvage value
Fire loss
500,000
1,700,000
2,220,000
2,640,000
440,000
(480,000)
2,600,000
1,560,000
640,000
120,000
20,000
140,000
540,000
Problem 13-13
1. Answer: B
Solution:
Raw materials - January 1
Purchases
Freight in
Raw materials available for use
Raw materials - December 31
Raw materials used
1,700,000
3,800,000
200,000
5,700,000
2,000,000
3,700,000
2. Answer: C
Solution:
Raw materials used
Directed labor
Manufacturing overhead ( 60% 5,000,000)
Total Manufacturing cost
3,700,000
5,000,000
3,000,000
11,700,000
3. Answer: D
Solution:
Cost of goods sold (70% 20,000,000)
14,000,000
4. Answer: A
Solution:
Total manufacturing cost
Good in process - January 1
Total goods in process
Goods in process - December 31 (SQUEEZE)
Cost of goods manufactured
Finished goods - January 1
Goods available for sale
Finished goods - December 31
Cost of goods sold
11,700,000
4,300,000
16,000,000
3,500,000)
12,500,000
6,000,000
18,500,000
(4,500,000)
14,000,000
Problem 13-14
Answer: A
Solution:
Balances
1
2
3
4
Adjusted
Physical Inventory
May 31,2020
950,000
(55,000)
845,000
Purchase up to
May 31,2020
6,750,000
75,000
(10,000)
(20,000)
(55,000)
6,740,000
Purchase up to
June 30,2020
8,000,000
(15,000)
(20,000)
7,965,000
Inventory - July 1, 2O18
Purchases may up to May 31, 2019
Goods available for sale
Less inventory - May 31, 2019
Cost of goods sold
875,000
6,740,000
7,615,000
895,000
6,720,000
Sales up to - May 31, 2019
Cost of goods sold
Gross profit
8,400,000
6,720,000
1,680,000
Rate ( 1,680,000 / 8,400,000)
20%
2. Answer: B
Solution:
Sales for year ended June 30, 2019
Less; Sales for 11 Months ended May 31,2019
Sales for June
9,600,000
8,400,000
1,200,000
3. Answer: C
Solution:
Cost of goods sold with profits
Cost of goods sold without profits
Cost of goods sold during June
4. Answer: D
Solution:
Inventory- July 2019
Purchases for year ended June 30 2020
Goods available for sale
Less : Cost of goods sold
Sales with profit (9,500,000 x 80%)
Sales without profit
Inventoru - June 300 2020
Problem 13-15
1. Answer: A
Solution:
Accounts receivable- April 30
Writeoff
Collections (440,000 - 20,000)
Total
Less: Accounts receivable - March
Sales for April
Sales up to march 31
Total sales
2. Answer: B
Solution:
Accounts payable- April 30 for Aprilshipment
Payment for April mechandise shipments
Purchase on April
Purchases up to March 31
Total purchases
3. Answer: C
Solution: 1,440,000
880,000
100,000
980,000
875,000
7,965,000
8,840,000
7,600,000
100,000
1,040,000
60,000
420,000
1,520,000
920,000
600,000
3,600,000
4,200,000
340,000
80,000
420,000
1,680,000
2,100,000
7,700,000
1,140,000
4. Answer: D
Solution:
Inventory- January 1
Purchases
Less: purchase returns
Goods available for sale
Less: Cost of goods sold (4,200,000 x 60%)
Inventory- April 30
Less: Goods in transit
Salvage value
Fire loss
Problem 13-16
1. A
2. C
3. D
4. D
5. A
1,880,000
2,100,000
20,000
100,000
140,000
2,080,000
3,960,000
2,520,000
1,440,000
240,000
1,200,000