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Roundtree Company reported the following information with respect to cost of goods sold for the current year: Units Historical cost 10,000 Inventory - January 1 530,000 45,000 Purchases 2,790,000 55,000 3,320,000 Goods available for sale Inventory December 31 (15,000) - ( 945,000) 40,000 2,375,000 Cost of goods sold The current cost per unit of inventory was P58 on January 1 and P72 on December 31. 1. In the statement of financial position restated to current cost, what amount should be reported as inventory on December 31? a. 1,080,000 b. 2,880,000 C. 975,000 870,000 d. 2 What amount should be reported as unrealized holding gain on inventory for the current year? a. 210,000 b. 135,000 560,000 C. d. 0 3. In the income statement restated to current cost, what amount should be reported as cost of goods sold for the current year? a. 2,320,000 b. 2,880,000 C. 2,600,000 d. 2,375,000 4 In the income statement restated to current cost, what the inventory sold for the current year? amount should be reported as realized holding gain from a 225,000 b. 135,000 c. 350,000 d. 505,000

Roundtree Company reported the following information with respect to cost of goods sold for the current year: Units Historical cost 10,000 Inventory - January 1 530,000 45,000 Purchases 2,790,000 55,000 3,320,000 Goods available for sale Inventory December 31 (15,000) - ( 945,000) 40,000 2,375,000 Cost of goods sold The current cost per unit of inventory was P58 on January 1 and P72 on December 31. 1. In the statement of financial position restated to current cost, what amount should be reported as inventory on December 31? a. 1,080,000 b. 2,880,000 C. 975,000 870,000 d. 2 What amount should be reported as unrealized holding gain on inventory for the current year? a. 210,000 b. 135,000 560,000 C. d. 0 3. In the income statement restated to current cost, what amount should be reported as cost of goods sold for the current year? a. 2,320,000 b. 2,880,000 C. 2,600,000 d. 2,375,000 4 In the income statement restated to current cost, what the inventory sold for the current year? amount should be reported as realized holding gain from a 225,000 b. 135,000 c. 350,000 d. 505,000

FINANCIAL ACCOUNTING
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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Roundtree Company reported the following information with respect to cost of goods sold for the current year: Units Historical cost 10,000 530,000 Inventory - January 1 Purchases 45,000 2,790,000 55,000 3,320,000 Goods available for sale Inventory - December 31 (15,000) ( 945,000) Cost of goods sold 40,000 2,375,000 The current cost per unit of inventory was P58 on January 1 and P72 on December 31. 1. In the statement of financial position restated to current cost, what amount should be reported as inventory on December 31? a. 1,080,000 b. 2,880,000 C. 975,000 870,000 d. 2 What amount should be reported as unrealized holding gain on inventory for the current year? a. 210,000 b. 135,000 C. 560,000 d. 0 3. In the income statement restated to current cost, what amount should be reported as cost of goods sold for the current year? a. 2,320,000 b. 2,880,000 C. 2,600,000 d. 2,375,000 4 In the income statement restated to current cost, what the inventory sold for the current year? amount should be reported as realized holding gain from a 225,000 b. 135,000 C. 350,000 d. 505,000
Transcribed Image Text:Roundtree Company reported the following information with respect to cost of goods sold for the current year: Units Historical cost 10,000 530,000 Inventory - January 1 Purchases 45,000 2,790,000 55,000 3,320,000 Goods available for sale Inventory - December 31 (15,000) ( 945,000) Cost of goods sold 40,000 2,375,000 The current cost per unit of inventory was P58 on January 1 and P72 on December 31. 1. In the statement of financial position restated to current cost, what amount should be reported as inventory on December 31? a. 1,080,000 b. 2,880,000 C. 975,000 870,000 d. 2 What amount should be reported as unrealized holding gain on inventory for the current year? a. 210,000 b. 135,000 C. 560,000 d. 0 3. In the income statement restated to current cost, what amount should be reported as cost of goods sold for the current year? a. 2,320,000 b. 2,880,000 C. 2,600,000 d. 2,375,000 4 In the income statement restated to current cost, what the inventory sold for the current year? amount should be reported as realized holding gain from a 225,000 b. 135,000 C. 350,000 d. 505,000
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