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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) 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 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 amount should be reported as realized holding gain from the inventory sold for the current year? 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 10,000 530,000 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) 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 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 amount should be reported as realized holding gain from the inventory sold for the current year? a. 225,000 b. 135,000 C. 350,000 d. 505,000

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...
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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) 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 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 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) 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 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 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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