Altis Company reported the following information for the currentyear:Sales (100,000 units atP150).Sales discount.PurchasesPurchase discount.15,000,0001,000,0009,300,000400,000The inventory purchases during the year were as follows:Unit costTotal cost1,200,0001,950,0002,800,0003,750,000800,00010,500,000UnitsBeginning inventory, January 1Purchases, quarter ended March 31Purchases, quarter ended June 30Purchases, quarter ended Sept. 30Purchases, quarter ended Dec. 3120,00030,00040,00050,00010,000150,0006065707580The 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.Atyear-end,theentityhasdeterminedthatthereplacementcostofinventorywasP70perunitandthenetrealizable valuewas P72 per unit. The normal profit margin is P10 perunit.What amount should be reported as cost of goods sold for the currentyear?a.6,500,000b.6,300,000c.6,700,000d.6,900,000

The cost of goods sold means the cost of producing the goods which are being sold by the…

Altis Company reported the following information for the currentyear: Sales (100,000 units atP150). 15,000,000 Sales discount. Purchases Purchase discount. 1,000,000 9,300,000 400,000 The inventory purchases during the year were as follows: Unit cost 60 65 70 75 80 Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 Units Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 20,000 30,000 40,000 50,000 10,000 150,000 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. Atyear-end,theentityhasdeterminedthatthereplacementcostofinventorywasP70perunitandthenetrealizable value was P72 per unit. The normal profit margin is P10 perunit. What amount should be reported as cost of goods sold for the currentyear? a.6,500,000 b.6,300,000 c.6,700,000 d.6,900,000

Altis Company reported the following information for the currentyear: Sales (100,000 units atP150). 15,000,000 Sales discount. Purchases Purchase discount. 1,000,000 9,300,000 400,000 The inventory purchases during the year were as follows: Unit cost 60 65 70 75 80 Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 Units Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 20,000 30,000 40,000 50,000 10,000 150,000 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. Atyear-end,theentityhasdeterminedthatthereplacementcostofinventorywasP70perunitandthenetrealizable value was P72 per unit. The normal profit margin is P10 perunit. What amount should be reported as cost of goods sold for the currentyear? a.6,500,000 b.6,300,000 c.6,700,000 d.6,900,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 6EA: Akira Company had the following transactions for the month. Calculate the gross margin for the...

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Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
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