9. An entity's accounting year ends on December 31, and it is currently preparing interim financial statements for the half year to June 30, 2010. The price of its product tends to vary. At June 30, 2010, it has inventories of 100,000 units, at a cost per unit of PI4. The net realizable at June 30, 2010 is P12 per unit. The expected net realizable value of these inventories at December 31, 2010 is P15.50 per unit. At what amount should these inventories be presented in the interim statement of financial position at June 30, 2010? a. P1,200,000 b. P1,375,000 c. P1,400,000 d. P1,550,000

9. An entity's accounting year ends on December 31, and it is currently preparing interim financial statements for the half year to June 30, 2010. The price of its product tends to vary. At June 30, 2010, it has inventories of 100,000 units, at a cost per unit of PI4. The net realizable at June 30, 2010 is P12 per unit. The expected net realizable value of these inventories at December 31, 2010 is P15.50 per unit. At what amount should these inventories be presented in the interim statement of financial position at June 30, 2010? a. P1,200,000 b. P1,375,000 c. P1,400,000 d. P1,550,000

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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Question

9. An entity's accounting year ends on December 31, and it is currently preparing interim financial statements for the
half year to June 30, 2010. The price of its product tends to vary. At June 30, 2010, it has inventories of 100,000 units,
at a cost per unit of PI4. The net realizable at June 30, 2010 is P12 per unit. The expected net realizable value of
these inventories at December 31, 2010 is P15.50 per unit. At what amount should these inventories be presented in
the interim statement of financial position at June 30, 2010?
a. P1,200,000
b. P1,375,000
c. P1,400,000
d. P1,550,000

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