Valix Finacc vol 1 Problem 7-41 to 50

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 7-41 to 50 (Multiple Choice)

Problem 7-41  Answer  C

Physical count                                                                                                        1,500,000

Problem 7-42  Answer  D

Physical count                                                                                                        2,500,000

Merchandise shipped FOB shipping point on December 30, 2008

    from a vendor                                                                                                       100,000

Goods shipped FOB shipping point to a customer on January 4, 2009                    400,000

Correct inventory                                                                                                   3,000,000

                                                                                                              103

Problem 7-43  Answer  D

Problem 7-44  Answer  D

Markup (40% x 500,000)                                                                                             200,000

Goods received on consignment                                                                            400,000

Total reduction                                                                                                         600,000

Problem 7-45  Answer  B                                        

Inventory shipped on consignment                                                                         600,000

Freight paid                                                                                                                50,000

Consigned inventory                                                                                                650,000

Problem 7-46  Answer  A

Reported inventory                                                                                               2,000,000

Goods sold in transit, FOB destination                                                                                 200,000

Goods purchased in transit, FOB shipping point                                                      300,000

Correct amount of inventory                                                                                2,500,000   

Problem 7-47  Answer  A

Problem 7-48  Answer  A

Consignment sales revenue (40 x P10,000)                                                                 400,000

Problem 7-49  Answer  B

Sales (900 x 1,000)                                                                                                       900,000

Commission (10% x 900,000)                                                                                     (   90,000)

Payable to consignor                                                                                                 810,000

Problem 7-50  Answer  C

List price                                                                                                                     900,000

Trade discounts 20% x 900,000                                                                                   (180,000)

                                                                                                                                   720,000 

                            10% x 720,000                                                                                            (  72,000)

Invoice price                                                                                                             648,000

Freight                                                                                                                         50,000

Cost of purchase                                                                                                       698,000