LARGE SESSION 5 EXERCISE 1

This refers to the cost of inventories for distribution such as: food for hospital/rehabilitation patients, jail inmates; goods for distribution to people affected by calamities/disasters/ground conflicts; drugs and medicines; medical, dental and laboratory supplies, Agricultural Produce, Textbooks and Instructional Materials, Construction Materials

• Inventory Held for Consumption

• Inventory Held for Sale

• 1. Inventory Held for Distribution

ABC Company purchased Laptops with a unit cost of P46,550.00. The Accountant recorded the laptops under Information and Communications Technology Equipment account

• TRUE

• FALSE

This refers to the acquisition of goods, consulting services and the contracting for infrastructure projects by the Procuring Entity. It shall also include the lease of goods and real estate.

• Purchase

• Buying

• 1. Procurement

In what year did the government change the capitalization threshold of Semi-Expendable Property from below P15,000 to P50,000.00?

• 2023

• 2022

• 2021

In determining the purchase costs of the inventories, the trade discounts, rebates and other similar items are deducted.

• TRUE

• FALSE

This refers to the cost or value of purchased/acquired office supplies such as bond papers, inks, and small tangible items, etc. for government day to day operations.

• 1. Inventory Held for Consumption

• Inventory Held for Sale

• 1. Inventory Held for Manufacturing

This refers to the cost of inventories of unprocessed materials that serve as component of produced goods. This is composed of Raw Materials Inventory, Work-in-Process Inventory and Finished Goods Inventory.

• 1. Inventory Held for Consumption

• Inventory Held for Sale

• Inventory Held for Manufacturing

Supplies and materials purchased for inventory purpose shall be recorded using the perpetual inventory system, including supplies and materials purchased out of Petty Cash Fund (PCF) for immediate use or on emergency cases.

• TRUE

• FALSE

This refers to the cost of goods purchased/acquired/produced which are intended for sale in the ordinary course of business.

• 1. Inventory Held for Sale

• 1. Inventory Held for Distribution

• 1. Inventory Held for Manufacturing

These are expendable commodities acquired or purchased held for sale in the ordinary course of business, for distribution, for manufacturing and for consumption in connection with government operations. It also includes Semi-expendable Machinery and Equipment.

• 1. Goods

• 1. Inventories

• 1. Procurement of Goods