What should Cake report as cost of goods sold for 2022? Cake Company sells one product which it purchases from various suppliers. The trial balance on December 31, 2022 included the following accounts: Sales (100,000 units at P150) Sales discount Purchase Purchase discount The inventory purchases during 2022 were as follows: Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 Units 20,000 30,000 40,000 50,000 10,000 150,000 Unit cost 60 65 70 75 15,000,000 1,000,000 9,300,000 400,000 80 Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 Cake's accounting policy is to report inventory in its financial statements at the lower of cost or net realizable value. Cost is determined under the first-out method. Cake has determined that, on December 31, 2022, the replacement cost of its inventory was P70 per unit. per unit and the net realizable value was P72 per unit. The normal profit margin P10 What should Cake report as cost of goods sold for 2022?
What should Cake report as cost of goods sold for 2022? Cake Company sells one product which it purchases from various suppliers. The trial balance on December 31, 2022 included the following accounts: Sales (100,000 units at P150) Sales discount Purchase Purchase discount The inventory purchases during 2022 were as follows: Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 Units 20,000 30,000 40,000 50,000 10,000 150,000 Unit cost 60 65 70 75 15,000,000 1,000,000 9,300,000 400,000 80 Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 Cake's accounting policy is to report inventory in its financial statements at the lower of cost or net realizable value. Cost is determined under the first-out method. Cake has determined that, on December 31, 2022, the replacement cost of its inventory was P70 per unit. per unit and the net realizable value was P72 per unit. The normal profit margin P10 What should Cake report as cost of goods sold for 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![What should Cake report as cost of goods sold for 2022?
*
Cake Company sells one product which it purchases from various suppliers. The trial balance
on December 31, 2022 included the following accounts:
Sales (100,000 units at P150)
Sales discount
Purchase
Purchase discount
The inventory purchases during 2022 were as follows:
Beginning inventory, January 1
Purchases, quarter ended March 31
Purchases, quarter ended June 30
Purchases, quarter ended Sept. 30
Purchases, quarter ended Dec. 31
Units
20,000
30,000
40,000
50,000
10,000
150,000
Unit cost
60
65
70
75
15,000,000
1,000,000
9,300,000
400,000
80
Total cost
1,200,000
1,950,000
2,800,000
3,750,000
800,000
10,500,000
Cake's accounting policy is to report inventory in its financial statements at the lower of cost
or net realizable value. Cost is determined under the first-out method.
Cake has determined that, on December 31, 2022, the replacement cost of its inventory was P70
per unit and the net realizable value was P72 per unit. The normal profit margin P10 per unit.
What should Cake report as cost of goods sold for 2022?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe51f5e3f-ffd1-43f7-85d2-6edabff416e2%2F9fbf48d9-4781-4e75-9e1f-754493140ec7%2Fnfji0sz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:What should Cake report as cost of goods sold for 2022?
*
Cake Company sells one product which it purchases from various suppliers. The trial balance
on December 31, 2022 included the following accounts:
Sales (100,000 units at P150)
Sales discount
Purchase
Purchase discount
The inventory purchases during 2022 were as follows:
Beginning inventory, January 1
Purchases, quarter ended March 31
Purchases, quarter ended June 30
Purchases, quarter ended Sept. 30
Purchases, quarter ended Dec. 31
Units
20,000
30,000
40,000
50,000
10,000
150,000
Unit cost
60
65
70
75
15,000,000
1,000,000
9,300,000
400,000
80
Total cost
1,200,000
1,950,000
2,800,000
3,750,000
800,000
10,500,000
Cake's accounting policy is to report inventory in its financial statements at the lower of cost
or net realizable value. Cost is determined under the first-out method.
Cake has determined that, on December 31, 2022, the replacement cost of its inventory was P70
per unit and the net realizable value was P72 per unit. The normal profit margin P10 per unit.
What should Cake report as cost of goods sold for 2022?
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