Problem 12-8 (AICPA Adapted)Based on a physical inventory at year-end, Cherry Compangdetermined the chocolate inventory ơn a FIFO basis atP2,600,000 with a replacement cost of P2,500,000.Cherry Company estimated that, after further processing costsof P1,200,000, the chocolate could be sold as finished candy barsfor P4,000,000. The normal profit margin is 10% of sales.What amount should be reported as chocolate inventory at yearend?a. 2,800,000b. 2,600,000c. 2,400,000d. 2,500,000

Solution: The cost of the inventory = $2,600,000 The market value of inventory is the middle of…

Problem 12-8 (AICPA Adapted} Based on a physical inventory at year-end, Cherry Com determined the chocolate inventory on a FTFO ba P2,600,000 with a replacement cost of P2,500,000. Cherry Company estimated that, after further processin. of P1,200,000, the chocolate could be sold as finished canc for P4,000,000. The normal profit margin is 10% of sale: What amount should be reported as chocolate inventory 8 end? a. 2,800,000 b. 2,600,000 c. 2,400,000 d. 2,500,000 r

Problem 12-8 (AICPA Adapted} Based on a physical inventory at year-end, Cherry Com determined the chocolate inventory on a FTFO ba P2,600,000 with a replacement cost of P2,500,000. Cherry Company estimated that, after further processin. of P1,200,000, the chocolate could be sold as finished canc for P4,000,000. The normal profit margin is 10% of sale: What amount should be reported as chocolate inventory 8 end? a. 2,800,000 b. 2,600,000 c. 2,400,000 d. 2,500,000 r

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please do not give solution in image format thanku
d t nces SLR Corporation has 500 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 $ 53 51 73 Required 1 Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. What is the before-tax income effect of the LCM adjustment? Complete this question by entering your answers in the tabs below. Product Cost 9 13 Required 2 Product 2 $ 37 29 39 7 11 Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. Market Per Unit Inventory Value Unit Cost Lower of Cost or Market
Question 5 In 2019, SixthZ had 75 treehouses in its ending inventory. Variable product costs per treehouse were $450, and fixed manufacturing overhead costs were applied at $75 per treehouse (which was the same as last year). The company's net operating income was $1.250 higher under absorption costing than it was under variable costing. What was the number of units of product in beginning inventory? 72 treehouses O92 treehouses O 58 treehouses 00 treehouses
PROBLEM The following data pertain to instalment sales of Mickey's store: • Down payment, 20%. • Instaiment sales: P545,000 in Year 1; P785,000 in Year 2; and P968,000 in Year 3. • Mark-up on cost, 35%. • Collections after down payment: 40% in the year of sale, 35% in the year after sale, and 25% in the third year. Note: Round off the decimal factors to the nearest whole number. Sample - 35.74% to 36% REQUIREMENTS: 1. The realized gross profit in year 1 2. The realized gross profit in year 3 3. The unrealized gross profit for instaiment sales made during Year 2, as of the end of Year 2 4. The instalment account receivables at the end of year 3 5. The unrealized gross profit at the end of year 3
Please do not give image format
Please do not give solution in image format thanku
Please do not give solution in image format thanku
Question (6) Post Company's 20Y1 net sales were $10,000,000, cash cost of goods sold was $5,500,000, and inventory days on hand was 62 days. The company projects its 20Y2 net sales will be $11,000,000, cash cost of goods sold will be $6,100,000, and inventory days on hand will be 57 days. What would be the cash flow impact of the five-day shortening of inventory days on hand? OA decrease of $75,342. O An increase of $75,342. OA decrease of $83,562. O An increase of $83,562.
khu.2
Please do not give solution in image format thanku
Please do not give solution in image format thanku
Please do not give solution in image format thanku