ABC Company uses FIFO costing and applies lower of cost and net realizable to its inventories. At the beginning of year 2020, 5,000 units were on hand with per unit cost of P 10. During 2020, 10,000 (Purchased date: October 15, 2020) and 25,000 (Purchased date: June 15, 2020) units of inventories were purchased at P 12 and P 15, respectively. Also, 35,000 units of inventories were sold at P 20 each. At what amount will the inventory be reported at the end of the year, assuming estimated selling price of the unit and estimated cost to sell are P 22 and P 7 respectively?
ABC Company uses FIFO costing and applies lower of cost and net realizable to its inventories. At the beginning of year 2020, 5,000 units were on hand with per unit cost of P 10. During 2020, 10,000 (Purchased date: October 15, 2020) and 25,000 (Purchased date: June 15, 2020) units of inventories were purchased at P 12 and P 15, respectively. Also, 35,000 units of inventories were sold at P 20 each. At what amount will the inventory be reported at the end of the year, assuming estimated selling price of the unit and estimated cost to sell are P 22 and P 7 respectively?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Company uses FIFO costing and applies lower of cost and net realizable to its inventories. At the beginning of year 2020, 5,000 units were on hand with per unit cost of P 10. During 2020, 10,000 (Purchased date: October 15, 2020) and 25,000 (Purchased date: June 15, 2020) units of inventories were purchased at P 12 and P 15, respectively. Also, 35,000 units of inventories were sold at P 20 each. At what amount will the inventory be reported at the end of the year, assuming estimated selling price of the unit and estimated cost to sell are P 22 and P 7 respectively?
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