Roundtree Company reported the following information with respect to cost of goods sold for the current year: Units Historical cost 10,000 530,000 Inventory - January 1 Purchases 45,000 2,790,000 55,000 3,320,000 Goods available for sale Inventory - December 31 (15,000) ( 945,000) 40,000 2,375,000 Cost of goods sold The current cost per unit of inventory was P58 on January 1 and P72 on December 31. 1. In the statement of financial position restated to current cost, what amount should be reported as inventory on December 31? a. 1,080,000 b. 2,880,000 C. 975,000 870,000 d. 2 What amount should be reported as unrealized holding gain on inventory for the current year? a. 210,000 b. 135,000 C. 560,000 d. 0 3. In the income statement restated to current cost, what amount should be reported as cost of goods sold for the current year? a. 2,320,000 b. 2,880,000 C. 2,600,000 d. 2,375,000 4 In the income statement restated to current cost, what amount should be reported as realized holding gain from the inventory sold for the current year? a. 225,000 b. 135,000 C. 350,000 d. 505,000
Roundtree Company reported the following information with respect to cost of goods sold for the current year: Units Historical cost 10,000 530,000 Inventory - January 1 Purchases 45,000 2,790,000 55,000 3,320,000 Goods available for sale Inventory - December 31 (15,000) ( 945,000) 40,000 2,375,000 Cost of goods sold The current cost per unit of inventory was P58 on January 1 and P72 on December 31. 1. In the statement of financial position restated to current cost, what amount should be reported as inventory on December 31? a. 1,080,000 b. 2,880,000 C. 975,000 870,000 d. 2 What amount should be reported as unrealized holding gain on inventory for the current year? a. 210,000 b. 135,000 C. 560,000 d. 0 3. In the income statement restated to current cost, what amount should be reported as cost of goods sold for the current year? a. 2,320,000 b. 2,880,000 C. 2,600,000 d. 2,375,000 4 In the income statement restated to current cost, what amount should be reported as realized holding gain from the inventory sold for the current year? a. 225,000 b. 135,000 C. 350,000 d. 505,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Transcribed Image Text:Roundtree Company reported the following information with
respect to cost of goods sold for the current year:
Units
Historical cost
10,000
530,000
Inventory - January 1
Purchases
45,000
2,790,000
55,000
3,320,000
Goods available for sale
Inventory - December 31
(15,000)
( 945,000)
40,000
2,375,000
Cost of goods sold
The current cost per unit of inventory was P58 on January 1
and P72 on December 31.
1. In the statement of financial position restated to current
cost, what amount should be reported as inventory on
December 31?
a. 1,080,000
b. 2,880,000
C.
975,000
870,000
d.
2 What amount should be reported as unrealized holding
gain on inventory for the current year?
a. 210,000
b. 135,000
C. 560,000
d.
0
3. In the income statement restated to current cost, what
amount should be reported as cost of goods sold for the
current year?
a. 2,320,000
b. 2,880,000
C. 2,600,000
d. 2,375,000
In the income statement restated to current cost, what
the inventory sold for the current year?
amount should be reported as realized holding gain from
a 225,000
b. 135,000
C. 350,000
d. 505,000
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