Historical cost Units purchased Units sold Rice Company used FIFO. There were 8,000 umíts on 1 costing P400,000. January First quarter Second quarter Third quarter Fourth quarter 410,000 550,000 425,000 630,000 7,000 8,500 6,500 9,000 7,500 7,300 8,200 7,000' The current cost per unit of inventory was P57 on January 1 and P71 on December 31. 1. What amount should be reported as inventory on December 31 at current cost? a. 576,000· b. 585,000 c. 630,000 d. 639,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Historical cost Units purchased Units sold
Rice Company used FIFO. There were 8,000 uníts on Januari.
1 costing P400,000.
First quarter
Second quarter
Third quarter
Fourth quarter
410,000
550,000
425,000
630,000
7,000
8,500
6,500
9,000
7,500
7,300
8,200
7,000'
The current cost per unit of inventory was P57 on January 1
and P71 on December 31.
1. What amount should be reported as inventory on
December 31 at current cost?
a. 576,000-
b. 585,000
c. 630,000
d. 639,000
с.
2. What amount should be reported as unrealized gain on
inventory for the current year?
а. 126,000
b.
54,000
с.
9,000
d.
3. In the income statement restated to current cost, what
amount should be reported as cost of goods sold for the
current year?
а. 1,920,000
b. 1,944,000
c. 2,100,000
d. 2,130,000.
4. What amount should be reported as realized holding gain
on inventory for the current year?
a. 345,000
b. 135,000
230,000
Ca. Sc75,000 Vwith CamScanner
с.
Transcribed Image Text:Historical cost Units purchased Units sold Rice Company used FIFO. There were 8,000 uníts on Januari. 1 costing P400,000. First quarter Second quarter Third quarter Fourth quarter 410,000 550,000 425,000 630,000 7,000 8,500 6,500 9,000 7,500 7,300 8,200 7,000' The current cost per unit of inventory was P57 on January 1 and P71 on December 31. 1. What amount should be reported as inventory on December 31 at current cost? a. 576,000- b. 585,000 c. 630,000 d. 639,000 с. 2. What amount should be reported as unrealized gain on inventory for the current year? а. 126,000 b. 54,000 с. 9,000 d. 3. In the income statement restated to current cost, what amount should be reported as cost of goods sold for the current year? а. 1,920,000 b. 1,944,000 c. 2,100,000 d. 2,130,000. 4. What amount should be reported as realized holding gain on inventory for the current year? a. 345,000 b. 135,000 230,000 Ca. Sc75,000 Vwith CamScanner с.
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