Cost LCNRV

Guitars 89,000 86,000

Ukuleles 94,000 85,000
Keyboards 125,000 111,000
Violins 194,000 114,000
TOTAL ₱ 502,000 ₱ 396,000

Requited:
1. What is the total balance of Inventory using the LCNRV method on an item by item basis?
Ans. ₱ 396,000
2. What is the proper balance in the Allowance for Inventory Write-down on December 31, 201B?
Ans.
Cost 502,000
LCNRV 396,000
Inventory Write-down ₱ 106,000
 Sales Purchases
Qty Cost Qty Cost
Dec-01 350 820
43 850
1 300 820
3 -5 820
9 55 910
10 76 960 5460
15 86 55 820 72960
31 850 70560
17 - 1 910
22 60 12 850
48 910
26 72 980

Required:
1. What is the FIFO cost of inventory on Dec 31, 201A?
Ans. ₱ 148,980
2. What is the cost of goods sold in December 201A?
Beg. Inventory 323,550
Purchases 9 50,050
10 72,960
26 70,560
Purchase Return - 910
Net Purchases 192,660
End. Enventory 148,980
Cost of Goods Sold ₱ 367,230