audit case no.

5 - inventory
Sales 52,000
less: sales returns 1,000
net sales 51,000
less: cost of sales
Inventory, beg 38,000
purchases 52,000
Available for sale 90,000
inventory, end 56,000 squeeze
cost of sale 34000 (51000/1.5)

Inventory end 56,000

less: invetory count 15,000
inventory loss 41,000

audit case no. 6: inventory : LRT Company

Sales 40,000
less: CGMS
Raw materials, beg. 35,000
purchases 20,000
Available for used 55,000
less: RM, end 35,000
Raw materials used 20,000
Direct labor 30,000
Mftg. OH 15,000
Mtfg cost 65,000
Goods in process, beg 80,000
Total placed in process 145,000
Less: Goods in process, end 118,000 loss by flood (squeeze)
Cost of goods manufactured 27,000
Add: FG, beg. 72,000
Available for sale 99,000
less: FG, end 75,000
CGMS 24,000
Gross profit 16,000 (40000x40%)

Audit case no. 7 : Pards Corp

Sales 340,000
less: CGMS
Raw materials, beg. 30,000
purchases 115,000
Available for used 145,000
less: RM, end 62,000
Raw materials used 83,000
Direct labor 80,000
Mftg. OH 40,000 (80000x50%)
Mtfg cost 203,000
Goods in process, beg 100,000
Total placed in process 303,000
Less: Goods in process, end 69,000 loss by flood (squeeze)
Cost of goods manufactured 234,000
Add: FG, beg. 140,000
Available for sale 374,000
less: FG, end 119,000
CGMS 255,000
Gross profit 85,000

Audit case no. 8: PGM Co.

a. Mdse inventory, Jan. 1 6,500
Retained earnings 6,500

b. Retained earnings 2700

Purchases 2700

a. Purchases 9300
Accounts payable 9300

Mdse inventory Dec. 31-BS 9300

Mdse Inventory, Dec. 31-IS 9300

b. Mdse inventory Dec. 31-BS 3700

Mdse Inventory, Dec. 31-IS 3700

c Purchases 5400
Accounts payable 5400

d. Accounts receivable 8800

Sales 8800

PGM Company
Cost of Goods sold
2020
Per client Adjustment Per audit
dr. cr.
Inventory, Jan.1 25,000 6,500 31,500
purchases 180,000 9,300 2,700
5,400 192,000
Total available for sale 205,000 223,500
inventory, dec. 31 35,000 9,300 48,000
3,700
Cost of goods sold 170,000 175,500
Audit case No. 1-Maligaya Co.
Inventory per count Nov. 30 150,000
less: sales in December
Total shipment 50,000
Less: goods delivered on
consignment not yet sold
by Dec. 31 13,000 37,000
113,000
Add: purchases
Received 12/24 8,000
shipped 12/28 13,000 21,000
Inventory Dec. 31 134,000

No.2: MABES
MABES Corp.
Adjustments to initial amounts
As of Dec. 31, 2020
Accounts
Inventory Payable Net Sales
Initial amounts 1,750,000 1,200,000 8,500,000
Adjustments : increase(decrrease)
1 none none (35,000)
2 50,000 50,000 none
3 20,000 none none
4 26,000 none (40,000)
5 25,000 none none
6 30,000 none none
7 none 60,000 none
8 2,000 4,000 none
total adjustments 153,000 114,000 (75,000)
Adjustment amounts 1,903,000 1,314,000 8,425,000

No.3 Alfonso Corp.

Beginning inventory 150,000
Purchases on hand (465000-60000 in transit) 405,000
Cost of goods available for sale 555,000
Less: cost of goods sold (450,000)
Inventory on hand Sept. 28, 2020 and destroyed by fire 105,000

Selling price= cost + 20% markup on cost

540000 = 1.2xcost
cost = 540000/1.2
cost = 450000

Audit Case No. 4: Ramon Co.

Ending invtory on hand before adj. 87,450
1 Goods in transit (FOB Shipping point) 3,700
feight cost 170
2 goods out on consignment(2800/1.4)+210 2,210
3 Goods sold to miguel, FOB dest.
(1700-251)/1.4 1,035
4 not recorded in inventory by consignee -
5 not recorded in inventory until received by customer -
Ending inventory, Dec. 31 94,565