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

Name: 6:59 PIR1_MIDTERM_20201.pdf62. Macchiato Company sells one product wh
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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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC Company employs a periodic inventory system and sells its inventory to customers for $20 per unit. ABC Company had the following inventory information available for May: May 1 May 3 May 8 May 13 May 18 May 20 May 24 May 30 Beginning inventory 1,900 units @ $10.20 cost per unit Purchased 2,100 units @ $11.60 cost per unit Sold 1,400 units Purchased 3,700 units @ $8.10 cost per unit Sold 2,600 units Purchase 4,100 units @ $14.70 cost per unit Sold 2,900 units Purchased 2,200 units @ $12.60 cost per unit During May, ABC Company reported operating expenses of $14,000 and had an income tax rate of 36%. Calculate the amount of net income shown on ABC Company's income statement for May using the LIFO method.
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The following information applies to the questions displayed below; Hemming Company reported the following current-year purchases and sales for its only product. Date Activities January 1 Beginning inventory January 10 Sales March 14 Purchase March 15 Sales- July 30 Purchase October S October 26 Sales Purchase Totals 275 units 450 units 475 units Units Acquired at Cost $13.00- $18.00 $23.00- Units Sold at Retail $3,575 230 units $43.00 8,100 10,925 408 units 455 units $43.00 $43.00 175 units 1,375 units @$28.90 4,900 $ 27,500 1,885 units Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. (b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. (c) Compute the gross profit for each method. a) Periodic FIFO Beginning inventory Purchases March 14 July 30 October 28 Total b) Periodio LIFO Beginning inventory Purchases: Cost of Goods Available for Sale Cost of Goods Sold…
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21. Williams Co. uses a periodic inventory system. The following are inventory transactions for the month of March: 3/1 Beginning Inventory 5,000 units at $2 3/7 Purchase 2,500 units at $3 3/16 Purchase 2,500 units at $4 3/26 Sales at $8 per unit 7,500 units Williams uses the weighted average method to determine the value of its inventory. What amount should Williams report as cost of goods sold on the income statement for the month of January?