Barilla spa pdf download

Inventory Accounts payable g. Accounts payable Inventory Answer: 1. Problem 10 Raffy Corporation reported income before income taxes as follows: The company uses the periodic inventory system. Ending inventories for and were properly recorded. The company always takes advantage of the early payment discounts and accordingly, records its purchases using the net method. The merchandise was not included in the ending inventory and was not recorded as a purchase until The sale of P4, was recorded in when the invoice was sent.

These goods were not included in the ending inventory of Raffy Corporation for How much is the correct income before taxes for ? The cost of sales at December 31, is understated by: a. P 12, b. P 9, c. P 9, The Retained earnings beginning at December 31, is understated by: a. P 13, b. P 10, d. P 9, 5. The beginning inventory January 1, of Raffy Corporation is understated by: a. P 9, d. P 5, Solution a. Beginning inventory COS Retained earnings beg. Sales 4, Retained earnings beg d.

Retained earnings beg 4, Beginning inventory COS 4, e. The December 31 inventory was determined by a physical count on December 28 and based on such count, the inventory was recorded by: Inventory 1,, Cost of sales 1,, 2. The ledger shows a sales balance of P20,, The company recognizes sales upon passage of title to the customers.

All customers are within a four-day delivery area. Questions 1. P 36, under b. P 36, over. Amount P 50, 62, 47, 82, 56, 90, Amount 67, 74, , 73, 67, P , over c. P , under b. P , over d. P , over 3. The adjusted inventory at December 31, is: a. The adjusted sales at December 31, is: a. P 20,, b. P 20,, c. P 19,, How much sales for the month of December were erroneously recorded in January ? P , 6. How much sales for the month of January were erroneously recorded in December ?

Sales for the month of December that were erroneously recorded in January Invoice 74, Invoice 67, Total , Sales for the month of January were erroneously recorded in December Invoice 50, Invoice 56, Total , Answer: 1.

Problem 12 On December 15, , under your observation, your client took a complete physical inventory and adjusted the financial perpetual inventory control accounts to agree with the physical inventory.

As of December 31, , you decided to accept the balance of the control account after examining transactions recorded in that account between December 15 and December 31, The audit was for the year ended December 31, In the course of conducting your examination of the sales cutoffs as of December 15 and December 31, , you discovered the following items: Date Inventory Item Cost Price Sales Price Date Shipped Date Billed Control Credited A P 60, P 78, B 77, , C 52, 67, D 87, , E 49, 64, Question: Based on the information above and your analysis, answer the following 1.

P , over b. P , under d. P , under 2. P , under 3. P 36, over c. P 36, under d. P , under. Inventory Cost of Goods Sold This item was not included in the physical inventory and was credited to the Inventory account on Properly recorded; no AJE needed.

All operating expenses are paid by Lion Inc. Lion, Inc. All sales are cash sales which are made for P per unit. The unit cost of inventory during January was P During , payments to suppliers totaled P, and operating expenses totaled P, The ending inventory for was valued at P Question: Based on the information above and your analysis, answer the following 1. Recorded sale during is: a. The accounts payable balance at December 31, is: a. The amount of inventory at December 31, is: a.

Problem 14 Kitkat Company operates a wholesale oil products company. Kitkat believes that an employee and a customer are conspiring to steal gasoline. The employee records sales to the customer not less than the amount actually placed in the customers tank truck. In order to confirm or refuse these suspicions, Kitkat has collected the following data for the past 10 working days. Kitkat had sales of P2,, during this day period.

All sales were made at P1. A physical inventory indicates that there are , gallons of gasoline in inventory at the close of business on September How much inventory should be present at the end of the day period in gallons? What is the cost of missing inventory? P 40, Answer 1 b 2 c. Problem 15 You were assigned to audit the factory accounts of Modfood Manufacturing Corporation for the year ended December 31, Manufacturing costs for the year ended December 31, submitted to you by the factory accountant was as follows: Raw Materials Used Direct Labor Factory Overhead Total.

Assuming cost percentage relationships are stated are correct, what will be the adjustment on manufacturing cost at December 31, ? Debit: Raw materials used 25, Credit Direct labor 25, b. Debit: Direct labor 25, Credit Raw materials used 25, c. Debit: Raw materials used 50, Credit Direct labor 50, d. Debit: Direct labor 50, Credit Raw materials used 50, 2. How much is the Work-in-process Inventory on December 31, ?

You observed the physical inventory of goods in the warehouse on December 31, and were satisfied that it was properly taken. When performing sales and purchases cut-off tests, you found that at December 31, , the last Receiving Report RR that had been used was No. The following information were found: 1.

Included in the warehouse physical inventory at December 31, were chemicals that had been purchased and received on Receiving Report No. Cost was P14, In the warehouse at December 31, , were goods that had been sold and paid for by the customer but which were not shipped out until They were all sold on Sales Invoice No. First shipment was unloaded on January 3, and received on Receiving Report No.

The freight was paid by the vendor. The second shipment was loaded and sealed on December 31, but was not delivered until January 2, This order was sold on Sales Invoice No. Temporarily stranded on December 31, , on a railroad sidings were two trucks of chemicals en route to the Nelson Neil Company. They were sold on Sales Invoice No. The material was shipped fob destination. Included in the physical inventory were chemicals exposed to rain while in transit and deemed unsalable.

Their invoice cost was P5, and freight charges of P had been paid on the chemicals. The Sales at December 31, is: s. Overstated by P 70, b. Overstated by P 55, The adjusted Sales at December 31, is: a. The adjusted Purchases at December 31, is: a. The Purchases at December 31, is: a. Understated by P4, c. Overstated by P10, b. Overstated by P 1, d.

Understated by P 4, 5. The Inventory at December31, is: a. Understated by P 8, c. Overstated by P12, b. Understated by P 14, d. Understated by P 12, 6. The Cost of Sales at December 31, is: a. Understated by P 17, c. Overstated by P1, b. Overstated by P 9, d. Understated by P12, Solution 1. Purchases Accounts payable SI 2.

Sales Advances from customers SI 3. Accounts payable Purchases RR 4. Sales Accounts receivable SI 6. Claims Receivable Purchases Freight-in 7. Cost of sales 5, Inventory. Sales Accounts receivable SI Answer: 1. The only accounting record save was the general ledger, from which the trial balance below was prepared.

The fiscal year of the corporation ends on December An examination of the April bank statement and canceled checks revealed that checks written during the period April totaled P, P57, paid to accounts payable as of March 31, P34, for April merchandise shipments, and P39, paid for other expenses. Deposits during the same period amounted to P,, which consisted of receipts on account from customers with the exception of a P9, refund from a vendor for merchandise returned in April.

Correspondence with suppliers revealed unrecorded obligations at April 15 of P, for April merchandise shipments, including P23, for shipments in transit on that date. Customers acknowledge indebtedness of P, at April 15, It was also estimated that customers owed another P80, that will never be acknowledge or recovered. Of the acknowledged indebtedness, P6, will probably be uncollectible.

The companies insuring the inventory agreed that the corporations fire loss claim should be based on the assumption that the overall gross profit ratio for the past two years was in effect during the current year. The corporations audited financial statements disclosed this information:. Year Ended December 31 5,, 3,, 2,, 2,, , , , , Inventory with a cost of P70, was salvaged and sold for P35, The balance of the inventory was a total loss.

Cash balance at April 15, is: a. P 70, b. Accounts Receivable balance at April 15, is: a. The Average Gross Profit for two years and is: a.

Receivable, 3. Payments for April mdse. Cash balance at April 15, is: 2. Accounts Receivable balance at April 15, is: 3. Inventory at April 15, is: 4. Accounts payable at April 15, is: 5.

Sales as of April 15, is: 6. Net purchases as of April 15, is: 7. Cost of Sales as of April 15, is: 8. Estimated inventory as of April 15, is: 9. Inventory loss at April 15, is: The Average Gross Profit for two years and is:.

During your audit, you noted that Jeanina held its cash book open after year-end. In addition, your audit reveled the following. Receipts for January of P, were recorded in the December cash receipts book. Payments to suppliers made on January of P93,, on which discounts of P3, were taken, were included in the December check register.

Merchandise inventory is valued at P1,, prior to any adjustments. The following information has been found relating to certain inventory transactions. Goods valued at P68, are on consignment with a customer. These goods are not included in the P1,, inventory figure. Goods costing P54, were received from a vendor on January 4, The related invoice was received and recorded on January 6, The goods were shipped on December 31, , terms FOB shipping point.

Goods costing P, were shipped on December 31, , and were delivered to the customer on January3, The terms of the invoice were FOB shipping point. The goods were included in the ending inventory even though the sale was recorded in A P45, shipment of goods to a customer on December 30, terms FOB destination are not included in the year-end inventory. The goods cost P32, and were delivered to the customer on January 3, The sale was properly recorded in The invoice for goods costing P43, was received and recorded as a purchase on December 31, The related goods, shipped FOB destination were received on January 4, , and thus were not included in the physical inventory.

Goods valued at P, are on consignment from a vendor. These goods are not included in the physical inventory. Questions Based on the above and the result of your audit, determine the adjusted balances of the following as of December 31, Cash a. Current ratio a. Accounts receivable Cash Sales discount Sales Cash 2. Cash Purchase discount Accounts payable 3. Angela Corporation, a company engaged in import and wholesale business, for the fiscal year ended June 30, , you determined that its internal control system was good.

Accordingly, you observed the physical inventory at an interim date, May 31, instead of at June 30, You obtained the following information from the companys general ledger Sales for eleven months ended May 31, Sales for the fiscal year ended June 30, Purchases for eleven months ended May 31, before audit adjestments0 Purchases for the fiscal year ended June 30, Inventory, July 1, Physical inventory, May 31, Your audit disclosed the following additional information.

Product was shipped in July This shipment was later sold in June at its costs of P16, Questions: In audit engagements in which interim physical inventories are observed, a frequently used auditing procedure is to test the reasonableness of the year-end inventory by the application of gross profit ratios.

Based on the above and the result of your audit, you are to provide the answers to the following: 1. The gross profit ratio for eleven months ended May 31, is a. The cost of goods sold during the month of June, using the gross profit ratio method is a. P , 3. The June 30, inventory using the gross profit method is a. During the course of the audit, you discover that the balances of the inter-company accounts are not reconciled.

Following is a copy of part of the inter-company ledger sheets: Date Dec. Legend for references: SI Sales register and invoices number CR Cash receipts book CD Cash disbursements book VR Voucher register, receiving report number, and Abamz invoice number RG Returned goods register and debit memo number A review of the inventory observation working papers discloses the following information: Observation at Abamz Company on December 31, 1.

Last shipment prior to the physical inventory was billed on Invoice number dated December 31, No returned merchandise was received from Yamas Company during the month of December Observation at Yamas Company on December 31, 1. The last shipment of merchandise returned to Abamz in December was entered on debit memo number 80 dated December 31, The last receiving report used in December was number dated December 31, for merchandise billed on Abamz invoice number What is the total unrecorded purchases of Yamas as of December 31, ?

P 29, b. P 14, d. P 11, 2. What is the reconciled balance of the inter-company accounts at December 31, ? P 30, c. P 29, d. P 37, 3. Abamz Companys inventory at December 31, should be increased by a. P 3, b. P 4, c. P 6, 4. Yamas Companys inventory at December 31, should be increased by a.

P 11, d. P 14, Open navigation menu. Close suggestions Search Search. User Settings. Skip carousel. Carousel Previous. Carousel Next. What is Scribd? Audit of Inventory. Uploaded by xxxxxxxxx. Document Information click to expand document information Description: Auditing problems. Did you find this document useful? Is this content inappropriate? Report this Document. Description: Auditing problems. Flag for inappropriate content. Download now.

Related titles. Carousel Previous Carousel Next. Jump to Page. Search inside document. P , Solution 1. Item letter b is: a. Item letter c is; a. Item letter d is: a. Item letter d is: Debit a. Cost of sales Inventory Cost of sales Inventory Answer 1. P 40, c. P 35, d. P 33, 2. Purchases at year-end is understated by: a. P 84, c. P 64, d. P 60, 3. Cost of sales at year-end is overstated by: a. P 46, b. P 21, c. P 1,, d. P 1,, Solution 1. P 30, d. P 22, 4.

P , 5. P 35, Solution Unadj. Inventory end 72, Acnts. Receivable 60, Acnts. Payable 30, Sales , Net Purchases , Pretax ncome 51, Item 1 Item 2 18, 18, Item 3 23, 23, 23, 25, 25, 25, 1, 1, 1, 10, 10, Item 4 Item 5 1, Item 6 1, Item 7 Item 8 6, 6, Item 9 15, 15, Item 10 7, 7, Item 11 13, 13, Item 12 8, Adjusted balance Answer: 1.

P 39, d. P 59, 2. P 32, d. P 28, 4. Selected account balances before considering the effects of the above items are as follows: Accounts receivable Inventory Accounts payable Sales Gross profit Net income P , , 67, , , 84, Questions: 1. The adjusted total sales in is a. The adjusted Cost of goods sold in is a. The following information was obtained from the companys accounting records for the year ended December 31, Inventory at December 31, based on physical count in Charmaines warehouse at cost on December 31, 1,, Accounts payable at December 31, 1,, Net sales sales less sales returns 9,, Your audit reveals the following information: The physical count included tools billed to a customer FOB shipping point on December 31, Understated by P, c.

Understated by P, d. Understated by P82, 2. Understated by P, 3. Overstated by P38, c. Overstated by P29, d. Correctly stated 4. P 2,, 5 d. P 2,, The adjusted balance of accounts payable at year-end is: a. P 1,, 6. P 9,, d. P 1,, 2. The adjusted accounts payable is: a. P 1,, 3. The adjusted sales is: a. P 8,, b. P 9,, , Accounts payable Purchases , Solution a. Beginning inventory COS Retained earnings beg 7, b.

P 36, over Amount P 50, 62, 47, 82, 56, 90, Amount 67, 74, , 73, 67, c. P , over 2. P 1,, 4. P 19,, d. P 19,, 5. Answer: 1. P 2,, d. P 2,, 2. Number of units sold during is: a. P , 4. The January 1, inventory balance is: a. P 40, Answer 1 b 2 c c. P 26, b. Manufacturing costs for the year ended December 31, submitted to you by the factory accountant was as follows: Raw Materials Used Direct Labor Factory Overhead Total P, , , P, Questions: 1. Overstated by P 55, c.

Overstated by P , d. Overstated by P 15, 2. B 85, 5. A 85, 6. Inventory at April 15, is: a. P 58, d. P 93, 4. Accounts payable at April 15, is: a. Sales as of April 15, is: a.

Net purchases as of April 15, is: a. P , 7. Cost of Sales as of April 15, is: a. P , 8. Estimated inventory as of April 15, is: a. P , 9. Inventory loss at April 15, is: a. P , The Average Gross Profit for two years and is: 34, , 9, P35, 23, P5,, P, 2,, P3,, , P2,, P2,, d. Accounts receivable a. Merchandise inventory a. Accounts payable a.

P 1,, 5. Working capital a. You obtained the following information from the companys general ledger Sales for eleven months ended May 31, Sales for the fiscal year ended June 30, Purchases for eleven months ended May 31, before audit adjestments0 Purchases for the fiscal year ended June 30, Inventory, July 1, Physical inventory, May 31, P1,, 1,, 1,, 1,, , , Your audit disclosed the following additional information.

Related searches Audit of inventory. Documents Similar To Audit of Inventory. Albert Macapagal. Erlinda Esguerra Guiang. Mark Lord Morales Bumagat. Xyza Faye Regalado. Renelyn David. Amairani Guarneros. Magnana Kaw. Mark Jonah Bachao. Reyn Saplad Perales. Tina Llorca. Femmie Santiago. Ibrahim Khalil. Agatha de Castro. Charis Marie Urgel. Car Mae La. More From xxxxxxxxx.

Kathleen Ang. Rosalie E. Charmaine Chu. Marion Tamani Jr. Dave Ramirez. Popular in Business General. Municipal Consolidation and Construction Proposal. Suneeth Verghese. Rosalie Rosales. Chinmay Sahoo. Rishabh Yadav. Anonymous YkMptv9j. Hannah Camille Prieto. Kshitij Surjuse. Our writers can complete a standard essay for you within hours and a part of a dissertation — in days.

Why Customers Become Our Regulars. We put decades of writing experience to work for you and are passionate about helping you succeed. Let the figures tell our story! Thank you. Great Writer. I really appreciate it so much.

View more reviews. We're Obsessed with Your Privacy. At GradeMiners, you can communicate directly with your writer on a no-name basis. New to Coursework Hero? Calculate the price of your order Type of paper needed:. You will get a personal manager and a discount.

Academic level:. We'll send you the first draft for approval by at. Total price:. We can help you reach your academic goals hassle-free. Order Now Order Now.