1 Correct amount

6,100,000 B

2 Invoice price plus import duties and other direct cost

6,300,000

3 Mark up on goods out on consignment

Goods purchased FOB destination
Goods held on consignment
Total reduction

560,000
1,200,000
900,000
2,660,000 B

4 Gross sales (5M x 80% x 90%)

Sales discounts (3.6M x 5%)
Prepaid freight
Full remittance

3,600,000
-180,000
100,000
3,520,000 D

5 Net Method
Gross Method

4,900,000
A
4,940,000

6 Unadjusted accounts payable

Lost goods purchased FOB SP
Purchased returns
Correction of debit balance
Adjusted accounts payable

2,200,000
40,000
-70,000
500,000
2,670,000 D

7 Net sales

2,015,000 B

8 Sales revenue on inventory delivered

2,500,000 B

1 Beginning Inventory
Net purchases (1.8M + 800T - 400T)
TGAS
Less: Ending inventory (6,000 x 180) + (2,000 x 200)
COGS

1,500,000
2,200,000
3,700,000
1,480,000
2,220,000

Beginning inventory
Purchases
Total
Less: Cost of sales (14,000 x 165)
Balance
Net purchases (2000 x 200)
Ending inventory

1,500,000
1,800,000
3,300,000
2,310,000
990,000
400,000
1,390,000

Beginning Inventory
Net purchases (1.8M + 800T - 100T)
TGAS
Less: Ending inventory (9,000 x 170.21*)
COGS

1,500,000
2,500,000
4,000,000
1,345,440
2,654,560

*Weighted average cost

2 Beginning inventory
Purchases
TGAS
Less: Ending inventory
COGS before writedown
Loss on writedown (4M - 3.7M) - (3M - 2.9M)
COGS
3 Allowance for inventory writedown before adjustment
Reduction in Allowance or Gain on reversal
Required allowance
COGS under direct method (3.5M + 20M - 4.8M)
5 Product 1 NRV (4M - 1.2M)
Product 2 Cost
LCNRV Individual
Product 1 Cost
Product 2 Cost
LCNRV Total

168.18
3,000,000
9,000,000
12,000,000
4,000,000
8,000,000
200,000
8,200,000
500,000
-300,000
200,000
18,700,000
2,800,000
3,600,000
6,400,000
3,000,000
3,600,000
6,600,000

6 12/31 FV (50 x 100,000)

PC price
Loss on PC

5,000,000
5,500,000
-500,000

3/31 FV (53 x 100,000)

5,300,000

12/31 FV
Gain
7 Purchase price
Additional cost
Total
Selling price of class A lots
Selling price of class B lots
Selling price of class C lots
Total selling price

5,000,000
300,000
12,000,000
3,000,000
15,000,000
24,000,000
16,000,000
20,000,000
60,000,000

RELATIVE SALES PRICE METHOD OF ALLOCATING COST

Class A
Class B
Class C
Total

6,000,000
4,000,000
5,000,000
15,000,000

1. A

165.00

3. B

2. A

A
3. B

173.75 4. A

2. B

1 Beginning inventory
Net Purchases (26 + 2 - 3.5 - 1.5)
TGAS
Less: Estimated COS
Net Sales
Less: Gross Profit (37M x 40%)
Estimated ending inventory
Physical count
Cost of goods out on consignment (1.M * 40%)
Estimated cost of missing inventory

5,000,000
23,000,000
28,000,000
37,000,000
14,800,000

22,200,000
5,800,000
(4,000,000)
(600,000)
1,200,000

2 GAS at cost
Less: Estimated COS (7,280,000 / 130%)
Estimated EI
Less: NRV of damaged goods
Fire Loss

7,100,000
5,600,000
1,500,000
100,000
1,400,000

3 Beginning inventory
Purchases
TGAS
Less: Estimated COS
Sales
Less: Gross Profit (5.6M x (2.25/9M))
Estimated ending inventory
NRV of damaged goods
Cost of undamaged goods (60,000 x (6.75/9M))
Estimated Fire Loss

600,000
4,300,000
4,900,000
5,600,000
1,400,000

4,200,000
700,000
(25,000)
(45,000)
630,000

4 GAS at retail (1.2M + 14.7M 500 + 300 + 300 1M)

Less: Estimated losses (600 + 400)
Balance of GAS at retail
Less: Net sales (9.5M + 500)
Ending inventory at retail
Cost ratio under conservative (9,600,000 / 16,000,000)
Estimated cost of inventory

15,000,000
1,000,000
14,000,000
10,000,000
4,000,000
60.00%
2,400,000

GAS at retail (1.2M + 14.7M 500 + 300 + 300 1M)

Less: Estimated losses (600 + 400)
Balance of GAS at retail
Less: Net sales (9.5M + 500)
Ending inventory at retail
Cost ratio under average (9,600,000 / 15,000,000)
Estimated cost of inventory

15,000,000
1,000,000
14,000,000
10,000,000
4,000,000
64.00%
2,560,000

5 GAS at retail (2M + 8M 1.5M + 500)

Less: Net sales
Ending inventory at retail
Cost ratio under FIFO (5,850,000 / 9,000,000)
Estimated cost of inventory

11,000,000
7,500,000
3,500,000
65.00%
2,275,000

LIFO Method as supplement

Purchases at retail (8M + 1.5M 500)
Less: Net sales
Remaining purchases at retail
Cost ratio under LIFO (5,850,000 / 9,000,000)
Remaining purchases at cost
Beginning inventory at cost
Estimated cost of inventory

9,000,000
7,500,000
1,500,000
65.00%
975,000
1,400,000
2,375,000

1 Gain on BA from net increase in FV (2M + 400T - 150K)

Gain on the harvest of AP
CA of BA on 12/31 (5M + net gain of 2,150,000)
2 BA
PPE including Bearer Plants

3 CA of 2 yearold animals (100 x 10,000)

Cost of 2.5 yearold animals (10 x 10,800)
FV of newborn animal on July 1 (10 x 7,000)
FV adjustment on 12/31 (SQUEEZED)
FV less cost to sell of animals
FV of newborn animal on July 1 (10 x 7,000)
FV adjustment on 12/31
Total gain from change in FV

2,150,000
850,000 C
7,150,000 C
5,100,000 A
3,400,000 C

1,000,000
108,000
70,000
222,000
1,400,000 B
70,000
222,000
292,000

2 YO animals
2.5 YO animals
New born animal
Gain from fair value change

50,000
3,000
2,000
55,000

Gain from additional BA

2 YO animals
2.5 YO animals
New born animal
Gain from physical change

70,000
150,000
9,000
8,000
237,000

4 FV - C2S on dare of harvest

3,500,000 A

NRV of Coffee Beans on Dec. 31, 2017

3,200,000 C