Question : 114. On the basis of the following data, determine the value : 1247153

 

114. On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work. 

Item

Inventory Quantity

Unit Cost Price

Unit Market Price

Product C

420

$6

$5

Product D

370

12

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

115. On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work. 

Item

Inventory Quantity

Unit Cost Price

Unit Market Price

Gear X

100

$33

$29

Gear Y

75

27

28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

116. Three identical units of Item Magnesium XP are purchased during May, as shown below.

 

Item Magnesium XP

Units

Cost

May 3

Purchase

1

$130

May 10

Purchase

1

136

May 19

Purchase

1

142

Total

 

3

$408

Average cost per unit

$136  (= $408 / 3)

 

 

 

 

 

 

Assume that one unit is sold on May 23 for $153. Determine the gross profit for May and ending inventory on May 31 using (a) FIFO, (b) LIFO, and (c) average cost methods. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

117. Three identical units of Item Steele Plate are purchased during March, as shown below.

 

Item Steele Plate

Units

Cost

Mar. 3

Purchase

1

$800

Mar. 10

Purchase

1

840

Mar. 19

Purchase

1

880

Total

 

3

$2,520

Average cost per unit

$840 (= $2,520 / 3)

 

 

 

 

 

 

Assume that one unit is sold on March 23 for $1,025. Determine the gross profit for March and ending inventory on March 31 using (a) FIFO, (b) LIFO, and (c) average cost methods. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

118. Safeguarding inventory from damage or theft is a primary objective for the control of inventory.  If you were running a clothing store, name three specific controls you would implement to guard inventory from theft. 

 

 

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