St.

Vincent College of Cabuyao

Brgy. Mamatid Cabuyao, Laguna
Final Exam

A. Answer the following problems. 5 points each question provided with necessary
computations otherwise, 1 point only. Strictly NO erasures allowed.

1. Nag- Iisip Nako Company regularly buys merchandise from Best Company and is
allowed trade discounts of 20% and 10% from the list price. Nag- Iisip Nako made a
purchase on March 20, 2026, and received an invoice with the list price of Php
150,000, a freight of Php 2,500, and payment terms of net 30 days.

Required: What is the total cost of merchandise purchases?

2. Alanganin ang Grade, Inc. had 10,200 units on April 30, 2016, based on physical count
of goods on that date. The following items have not yet been recorded as purchases
and sales as of April 30:

No. Transactions Terms Number of Units

1 Purchase FOB Shipping Point 250

2 Purchase FOB Destination 300

3 Sale FOB Shipping Point 650

4 Sale FOB Destination 500

Items 1-4 were shipped by the seller on April 30, 2016 and received by the buyer May
5, 2016.

Required: How many units should be considered as inventory at the end of April
2016?

3. Merchandise Inventory, January 1, 2016 Php 450,000

Purchases for the year 2016 Php 3,150,000
Sales for the year 2016 Php 4,200,000

You conducted a physical inventory on December 31, 2016 and determined Php
500,000 was in the company’s warehouse. The company president suspects some
new employees may have pilfered a portion of the merchandise inventory.

Required: Determine the estimated cost of the missing inventory, assuming

gross profit remained constant at:

a. 40% of Sales
 b. 40% of Cost of Sales

4. On May 6, 2016, a flash flood caused damage to the merchandise stored in the
warehouse on Next Sem Ulit Company. You were asked to submit an estimate of the
merchandise destroyed in the warehouse. The following data were established:

a. 2015 Net Sales, Php 8,000,000 matched against cost of Php 5,600,000.
b. Merchandise Inventory, January 1, 2016 was Php 2,000,000, 90% of which was in
the warehouse and 10% in downtown showroom.

From January 1, 2016 to date of flood, you ascertained the following:

a. Invoice value of purchases (all stored in the warehouse), Php 1,000,000.

b. Freight in, Php 40,000.
c. Purchase returns, Php 60,000.

Cost of merchandise transferred from the warehouse to showroom was Php 80,000
and Net Sales from January 1 to May 6, 2016 (all warehouse stock) was Php
3.200,000.

Required: Assuming gross profit rate in 2016 to be the same as in the previous
year, what was the estimated cost of merchandise destroyed by the flood?

5. Papasa ba Ako Company is engaged in buying and selling cleansing products. The
following transactions and other information are available for the year ended
December 31, 2016:

Inventory, January 1, 2016 Php 200,0000

Gross Purchases, all under the credit terms 2/10, n/30 Php 5,000,000
Purchase returns made by the company, all made before
payment of accounts Php 80,000
Gross Sales Php 7,380,000
Sales allowances granted Php 30,000
Sales returns Php 180,000

At December 31, 2016, purchases costing Php 100,000 were in transit, FOB Shipping
Point.

Required: Determine the estimated cost of Inventory at December 31, 2016,

assuming that the company sells its products allowing a 40% gross profit on
sales.