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

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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Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 270 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. 28 Date January 1 January 10 January 20 January 25 January 30 Required: S ual Activities Beginning inventory Sales Purchase Sales Purchase Totals Units Acquired at Cost 180 units @ $ 10.50 = 110 units @ Units sold at Retail $ 1,890 140 units @ $ 19.50 $9.50- 1,045 130 units @ $ 19.50 270 units @ 560 units $ 9.00 = 2,430 $ 5,365 270 units 1. Compute gross profit for the month of January for Laker Company for the four inventory methods. 2. Which method yields the highest gross profit? 3. Does gross profit using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest gross profit? ง
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The units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory 20 units @ $32 $640 June 16 Purchase 30 units @ $34 1,020 Nov. 28 Purchase 41 units @ $35 1,435 91 units $3,095 There are 11 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the difference in gross profit between the LIFO and FIFO inventory cost systems. Enter the answer as a positive number. FIFO Cost of Goods Sold $fill in the blank 1 LIFO Cost of Goods Sold $fill in the blank 2 Difference fill in the blank 3
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