Altis Company reported the following information for the currentyear:Sales (100,000 units atP150).Sales discount.PurchasesPurchase discount.15,000,0001,000,0009,300,000400,000The inventory purchases during the year were as follows:Unit costTotal cost1,200,0001,950,0002,800,0003,750,000800,00010,500,000UnitsBeginning inventory, January 1Purchases, quarter ended March 31Purchases, quarter ended June 30Purchases, quarter ended Sept. 30Purchases, quarter ended Dec. 3120,00030,00040,00050,00010,000150,0006065707580The accounting policy is to report inventory in the financial statements at the lower of cost and net realizable value.Cost is determined under the first-in, first-out method.Atyear-end,theentityhasdeterminedthatthereplacementcostofinventorywasP70perunitandthenetrealizable valuewas P72 per unit. The normal profit margin is P10 perunit.What amount should be reported as cost of goods sold for the currentyear?a.6,500,000b.6,300,000c.6,700,000d.6,900,000

The cost of goods sold means the cost of producing the goods which are being sold by the…

Altis Company reported the following information for the currentyear: Sales (100,000 units atP150). 15,000,000 Sales discount. Purchases Purchase discount. 1,000,000 9,300,000 400,000 The inventory purchases during the year were as follows: Unit cost 60 65 70 75 80 Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 Units Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 20,000 30,000 40,000 50,000 10,000 150,000 The accounting policy is to report inventory in the financial statements at the lower of cost and net realizable value. Cost is determined under the first-in, first-out method. Atyear-end,theentityhasdeterminedthatthereplacementcostofinventorywasP70perunitandthenetrealizable value was P72 per unit. The normal profit margin is P10 perunit. What amount should be reported as cost of goods sold for the currentyear? a.6,500,000 b.6,300,000 c.6,700,000 d.6,900,000

Altis Company reported the following information for the currentyear: Sales (100,000 units atP150). 15,000,000 Sales discount. Purchases Purchase discount. 1,000,000 9,300,000 400,000 The inventory purchases during the year were as follows: Unit cost 60 65 70 75 80 Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 Units Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 20,000 30,000 40,000 50,000 10,000 150,000 The accounting policy is to report inventory in the financial statements at the lower of cost and net realizable value. Cost is determined under the first-in, first-out method. Atyear-end,theentityhasdeterminedthatthereplacementcostofinventorywasP70perunitandthenetrealizable value was P72 per unit. The normal profit margin is P10 perunit. What amount should be reported as cost of goods sold for the currentyear? a.6,500,000 b.6,300,000 c.6,700,000 d.6,900,000

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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