62. Macchiato Company sells one product which it purchases from various suppliers. The trial balance on December 31, 2017 included the following: Sales (100,000 units at P150) Sales discount Purchase 15,000,000 1,000,000 9,300,000 400,000 Purchase discount The inventory purchases during 2017 were as follows: Units Unit Total cost 20,000 60 30,000 40,000 50,000 10,000 80 150,000 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 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 65 70 75 Macchiato's accounting policy is to report inventory in its financial statements at the lower of cost or net realizable value. Cost is determined under the first-out method. Macchiato has determined that, on December 31, 2017, the replacement cost of its inventory was P70 per unit while the net realizable value was P72 per unit. The normal profit margin was computed at P10 per unit. The amount that should Macchiato report as cost of goods sold for 2017 is a. 6,300,000 b. 6,500,000 c. 6,700,000. d. 6,900,000

62. Macchiato Company sells one product which it purchases from various suppliers. The trial balance on December 31, 2017 included the following: Sales (100,000 units at P150) Sales discount Purchase 15,000,000 1,000,000 9,300,000 400,000 Purchase discount The inventory purchases during 2017 were as follows: Units Unit Total cost 20,000 60 30,000 40,000 50,000 10,000 80 150,000 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 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 65 70 75 Macchiato's accounting policy is to report inventory in its financial statements at the lower of cost or net realizable value. Cost is determined under the first-out method. Macchiato has determined that, on December 31, 2017, the replacement cost of its inventory was P70 per unit while the net realizable value was P72 per unit. The normal profit margin was computed at P10 per unit. The amount that should Macchiato report as cost of goods sold for 2017 is a. 6,300,000 b. 6,500,000 c. 6,700,000. d. 6,900,000

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Description: 6:59 PIR1_MIDTERM_20201.pdf62. Macchiato Company sells one product which it purchases from various suppliers. The trial balance onDecember 31, 2017 included the following:Sales (100,000 units at P150)Sales discount15,000,0001,000,0009,300,000400,000

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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