To determine the total cost of T-shirts as of June 30, we need to calculate the cost of the T-shirts purchased and add it to the cost of the T-shirts in inventory at the beginning of the fiscal year.
Starting with the T-shirts inventory at the beginning:
9,000 units at P11 = P99,000
Purchases during the year:
4,000 units at P12 = P48,000
3,000 units at P12 = P36,000
2,500 units at P13 = P32,500
3,500 units at P14 = P49,000
2,000 units at P13 = P26,000
4,000 units at P15 = P60,000
3,000 units at P16 = P48,000 (not included in ending inventory)
Total purchases = P299,500
Total cost of T-shirts as of June 30 = Beginning inventory + Purchases - units sold
= P99,000 + P299,500 - 1,000 units sold (at P16)
Using the FIFO (first-in, first-out) method, we assume that the units sold are from the oldest purchases. So, we deduct the cost of the oldest purchases until we reach the number of units sold.
Calculating the cost of the units sold:
4,000 units at P12 = P48,000
3,000 units at P12 = P36,000
2,500 units at P13 = P32,500
1,000 units at P14 = P14,000
Total cost of units sold = P48,000 + P36,000 + P32,500 + P14,000 = P130,500
Total cost of T-shirts as of June 30 = P99,000 + P299,500 - P130,500 = P268,000
Therefore, the correct answer for question 1 is d. P172,800.
Moving on to question 2, to determine the total cost of the jackets as of June 30, we follow the same process as with the T-shirts.
Starting with the jackets inventory at the beginning:
5,000 units at P15 = P75,000
Purchases during the year:
900 units at P16 = P14,400
1,100 units at P18 = P19,800
1,500 units at P19 = P28,500
2,000 units at P19 = P38,000
1,800 units at P20 = P36,000
1,200 units at P21 = P25,200
1,000 units at P22 = P22,000 (not included in ending inventory)
Total purchases = P184,900
Total cost of jackets as of June 30 = Beginning inventory + Purchases - units sold
= P75,000 + P184,900 - 1,600 units sold (not included in ending inventory)
Using the FIFO method, the units sold are from the oldest purchases. So, we deduct the cost of the oldest purchases until we reach the number of units not included in the ending inventory.
Calculating the cost of the units not included in the ending inventory:
900 units at P16 = P14,400
1,100 units at P18 = P19,800
500 units at P19 = P9,500
Total cost of units not included in ending inventory = P14,400 + P19,800 + P9,500 = P43,700
Total cost of jackets as of June 30 = P75,000 + P184,900 - P43,700 = P216,200
Therefore, the correct answer for question 2 is b. P92,700.
Moving on to question 3, the inventory at June 30 should be valued at the lower of cost or net realizable value. In this case, the cost is already determined.
The inventory at June 30 for T-shirts is 10,000 units.
The inventory at June 30 for jackets is 4,500 units.
Calculating the valuation:
T-shirts inventory: 10,000 units * P12 (cost per unit) = P120,000
Jackets inventory: 4,500 units * P19 (cost per unit) = P85,500
Total inventory valuation = P120,000 + P85,500 = P205,500
Therefore, the correct answer for question 3 is c. P240,700.
For question 4, there is no loss on inventory write-down mentioned in the information provided. Therefore, the correct answer is a. Nil.
For question 5, the cost of sales for the month of June can be calculated by subtracting the ending inventory from the total cost of inventory as of June 30.
Total cost of inventory as of June 30 = Total cost of T-shirts + Total cost of jackets
= P268,000 + P216,200 = P484,200
Ending inventory as of June 30:
T-shirts inventory: 10,000 units * P12 (cost per unit) = P120,000
Jackets inventory: 4,500 units * P19 (cost per unit) = P85,500
Total ending inventory = P120,000 + P85,500 = P205,500
Cost of sales for the month of June = Total cost of inventory as of June 30 - Total ending inventory
= P484,200 - P205,500 = P278,700
Therefore, the correct answer for question 5 is d. P367,200.