15. In the fourth quarter of Year 1, Beech Corporation produced three products (related to different product lines) that it still has in inventory at December 31, the end of its fiscal year. The following table provides information about each product: Product Cost Replacement Cost Selling Price $130 $160 $100 101 202 303 $140 $135 $90 $160 $140 $70 Beech Corporation expects to incur selling costs equal to 5 percent of the selling price on each of the products. Required: Determine the amount at which Beech should report its inventory on the December 31, Year 1, balance sheet. 23 4
15. In the fourth quarter of Year 1, Beech Corporation produced three products (related to different product lines) that it still has in inventory at December 31, the end of its fiscal year. The following table provides information about each product: Product Cost Replacement Cost Selling Price $130 $160 $100 101 202 303 $140 $135 $90 $160 $140 $70 Beech Corporation expects to incur selling costs equal to 5 percent of the selling price on each of the products. Required: Determine the amount at which Beech should report its inventory on the December 31, Year 1, balance sheet. 23 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:15. In the fourth quarter of Year 1, Beech Corporation produced three
products (related to different product lines) that it still has in inventory at
December 31, the end of its fiscal year. The following table provides
information about each product:
Product Cost Replacement Cost Selling Price
$130
$160
$100
101
202
303
$140
$135
$90
$160
$140
$70
Beech Corporation expects to incur selling costs equal to 5 percent of the
selling price on each of the products.
Required:
Determine the amount at which Beech should report its inventory on the
December 31, Year 1, balance sheet.
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