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

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