10. Altis Company reported the following information for the current year: Sales (100,000 units at P150) Sales discount Purchases Purchase discount The inventory purchases during the year were as follows: Units 20,000 30,000 40,000 50,000 10,000 150,000 Unit cost Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 60 65 70 75 80 The accounting policy is to report inventory in the financial statements at the lower of cost and net realizable value. Cost is determined under the first-in, first-out method. At year-end, the entity has determined that the replacement cost of inventory was P70 per unit and the net realizable value was P72 per unit. The normal profit margin is P10 per unit. What amount should be reported as cost of goods sold for the current year? a. 6,500,000 b. 6,300,000 c. 6,700,000 d. 6,900,000

10. Altis Company reported the following information for the current year: Sales (100,000 units at P150) Sales discount Purchases Purchase discount The inventory purchases during the year were as follows: Units 20,000 30,000 40,000 50,000 10,000 150,000 Unit cost Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 60 65 70 75 80 The accounting policy is to report inventory in the financial statements at the lower of cost and net realizable value. Cost is determined under the first-in, first-out method. At year-end, the entity has determined that the replacement cost of inventory was P70 per unit and the net realizable value was P72 per unit. The normal profit margin is P10 per unit. What amount should be reported as cost of goods sold for the current year? a. 6,500,000 b. 6,300,000 c. 6,700,000 d. 6,900,000

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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