Montero Company maintains a perpetual inventory system and sells all its inventories at a price of P12 per unit. Montero has the following information pertaining to its inventory for the month of October: Units Unit cost Total cost Balance on 10/1 15,000 P6 P90,000 Purchased on 10/5 20,000 P9 P180,000 Sold on 10/20 18,000 Purchased on 10/25 12,000 P7 P84,000 Based on the above, answer the following (Round unit cost to two decimal places): What amount should Montero report as inventory on October 31 using the moving average method? ________________ What amount should Montero report as cost of goods sold for October using the weighted average method? ________________ Under the FIFO method, what amount should Montero report as gross profit for October? ________________
Montero Company maintains a perpetual inventory system and sells all its inventories at a price of P12 per unit. Montero has the following information pertaining to its inventory for the month of October: Units Unit cost Total cost Balance on 10/1 15,000 P6 P90,000 Purchased on 10/5 20,000 P9 P180,000 Sold on 10/20 18,000 Purchased on 10/25 12,000 P7 P84,000 Based on the above, answer the following (Round unit cost to two decimal places): What amount should Montero report as inventory on October 31 using the moving average method? ________________ What amount should Montero report as cost of goods sold for October using the weighted average method? ________________ Under the FIFO method, what amount should Montero report as gross profit for October? ________________
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Montero Company maintains a perpetual inventory system and sells all its inventories at a price of P12 per unit. Montero has the following information pertaining to its inventory for the month of October:
|
Units |
Unit cost |
Total cost |
Balance on 10/1 |
15,000 |
P6 |
P90,000 |
Purchased on 10/5 |
20,000 |
P9 |
P180,000 |
Sold on 10/20 |
18,000 |
|
|
Purchased on 10/25 |
12,000 |
P7 |
P84,000 |
Based on the above, answer the following (Round unit cost to two decimal places):
- What amount should Montero report as inventory on October 31 using the moving average method? ________________
- What amount should Montero report as cost of goods sold for October using the weighted average method? ________________
- Under the FIFO method, what amount should Montero report as gross profit for October? ________________
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