ABC Company reported the following information with respect to cost of goods sold for the current year: Units Historical Cost Inventory- January 1 20,000 540,000 Purchases 55,000 2,890,000 Goods available for sale 75,000 3,430,000 Inventory- December 31 (25,000) (955,000) Cost of Goods Sold 50,000 2.475,000 The current cost per unit of inventory was P58 on January 1 and P72 on December 31. In the income statement restated to current cost, what is the cost of goods sold for the current year? a. 3,250,000 b. 2,475,000 c. 3,600,000 d. 2,900,000
ABC Company reported the following information with respect to cost of goods sold for the current year: Units Historical Cost Inventory- January 1 20,000 540,000 Purchases 55,000 2,890,000 Goods available for sale 75,000 3,430,000 Inventory- December 31 (25,000) (955,000) Cost of Goods Sold 50,000 2.475,000 The current cost per unit of inventory was P58 on January 1 and P72 on December 31. In the income statement restated to current cost, what is the cost of goods sold for the current year? a. 3,250,000 b. 2,475,000 c. 3,600,000 d. 2,900,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
ABC Company reported the following information with respect to cost of goods sold for the current year:
|
Units |
Historical Cost |
|
|
Inventory- January 1 |
20,000 |
540,000 |
|
Purchases |
55,000 |
2,890,000 |
|
Goods available for sale |
75,000 |
3,430,000 |
|
Inventory- December 31 |
(25,000) |
(955,000) |
|
Cost of Goods Sold |
50,000 |
2.475,000 |
The current cost per unit of inventory was P58 on January 1 and P72 on December 31.
In the income statement restated to current cost, what is the cost of goods sold for the current year?
a.
3,250,000
b.
2,475,000
c.
3,600,000
d.
2,900,000
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