Activity No.

1. Please answer the following problems after you read the Notes on Activity No. 3.
2. Submit the same as we resume classes but please do this on time.
3. Just keep Safe.

1. Beginning inventory, purchases and sales data for tennis rackets are as follows:

Apr 3 Inventory 12 units @ P45

11 Purchase 13 units @ P47
14 Sale 18 units
21 Purchase 9 units @ P60
25 Sale 10 units

Complete the inventory cost card assuming the business maintains a perpetual inventory system and
calculates the cost of merchandise sold and ending inventory using LIFO.

Cost of
Purchases Merchandise Sold Inventory
Date Qty Unit Total Qty Unit Total Qty Unit Total
Cost Cost Cost Cost Cost Cost

Balances

2. The units of an item available for sale during the year were as follows:

January 10 Inventory 27 units @ P90

February 27 Purchase 54 units @ P98
July 11 Purchase 63 units @ P106
November 13 Purchase 36 units @ P115

There are 50 units of the item in the physical inventory at December 31. The periodic inventory
system is used. Determine the ending inventory cost by (a) the first-in, first-out method, (b) the last-in,
first-out method, and (c) the average cost method. Show your work.

3. Beginning inventory, purchases and sales data for T-shirts are as follows:

Apr 3 Inventory 24 units @ P10

11 Purchase 26 units @ P12
 14 Sale 36 units
21 Purchase 18 units @ P15
25 Sale 20 units

Assuming the business maintains a periodic inventory system, calculate the cost of merchandise sold
and ending inventory under the following assumptions:
a. FIFO
b. LIFO
c. Average cost (round cost of merchandise sold and ending inventory to the nearest peso)

4. Brutus Corporation, a newly formed corporation, has the following transactions during May,
2011, it’s first month of operation.

May 1 Purchased 500 units @ P25.00 each

May 4 Purchased 300 units @ P24.00 each
May 6 Sold 400 units @ P38.00 each
May 8 Purchased 700 units @ P23.00 each
May 13 Sold 450 units @ P37.50 each
May 20 Purchased 250 units @ P25.25 each
May 22 Sold 275 units @ P36.00 each
May 27 Sold 300 units @ P37.00 each
May 28 Purchased 550 units @ P26.00 each
May 30 Sold 100 units @ P39.00 each

Calculate total sales, cost of goods sold, gross profit and ending inventory using each of the following
inventory methods:
1. FIFO Perpetual
2. FIFO Periodic
3. LIFO Perpetual
4. LIFO Periodic
5. Average Cost Periodic (round average to nearest cent)