Carla Vista Co. sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2017: Coffee Bean Units Unit Cost Market Market Coffea arabica 12,000 bags $ 5.90 $ 5.87 Coffea robusta 5,000 bags 3.40 3.50 Calculate Tascon's inventory by applying the lower-of-cost-or-market basis.

Carla Vista Co. sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2017: Coffee Bean Units Unit Cost Market Market Coffea arabica 12,000 bags $ 5.90 $ 5.87 Coffea robusta 5,000 bags 3.40 3.50 Calculate Tascon's inventory by applying the lower-of-cost-or-market basis.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 8C: Analyzing Starbuckss Inventory Disclosures Obtain Starbuckss 2017 annual report either using the...

See similar textbooks

Similar questions

Monty Corp. sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2017: Coffee Bean Units Unit Cost Market Market Coffea arabica 12,800 bags $ 5.40 $ 5.37 3.40 3.50 Coffea robusta 4,000 bags Calculate Tascon's inventory by applying the lower-of-cost-or-market basis. Tascon's inventory $
Accounting Sheridan Company sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2022. Coffee Bean Units Unit Cost Net Realizable Value Coffee $5.30 $5.27 12,000 bags arabica Coffee 4,900 bags 3.30 3.40 robusta Calculate Sheridan's inventory by applying the lower-of-cost-or-net realizable value basis.
FlinFlon Limited sells three products whose prices are sensitive to price fluctuations. The following inventory information is available for these products at March 31, 2018: Product Units Unit Cost Net Realizable Value A 25 $ 7 $ 7 B 30 6 8 C 60 11 10 Instructions: Calculate FlinFlon's inventory at the Lower of Cost and Net Realizable Value (LCNRV). Prepare any journal entry required to record the LCNRV, assuming that FlinFlon uses a perpetual inventory system.
Smmons. Inc. uses the lower-of-cont-ormarket method to value s inventory that is accounted for using the FIFO method. Data regarding an tam in its inventory ls as follows Cost $26 Replacement cost 20 Selling price 30 Cost of completion and disposal 2 Normal profit margin 7. What is the lower-of-cost-or-mariket for this item?
Analyzing Starbuckss Inventory Disclosures Obtain Starbuckss 2017 annual report either using the Investor Relations portion of its web site (do a Web search for Starbucks investor relations) or go to http://www.sec.gov and click Search for company filings under Filings and Forms (EDGAR). Required: 1. What is the primary cost flow assumption that Starbucks uses: Discuss how the amounts reported under this assumption compare to amounts reported under alternative cost flow assumptions. Explain why you think Starbucks selected this method. 2. What type of inventory systemperpetual or periodicdo you think Starbucks uses? 3. Does Starbucks have any purchase commitments? If so, are they included in inventory? 4. Assume ending inventory for 2016 was 1,306.4 million. Compute the inventory turnover ratio for 2018 and 2017. What is your evaluation of the difference? (Round your answer to two decimal places.) 5. Recreate summary journal entries to record the transactions that affected inventory during 2018. (Assume all inventory purchases were on account.)
Calculate the ending inventory for the following cost flow assumption: LIFO.
Instruction: Please use moving average in answering the questions (disregard FIFO)
Please help me. Thankyou.
I need help calculating not only the net realizable value for all four products but also calculating the ending inventory using the LOWER OF COST OR MARKET METHOD for- individual items, category, and total inventory (Please Show Calculations).
Marzan Company uses LIFO and a perpetual inventory system for its leading product, Z. Given the historical cost of product Z is $22, the selling price of product Z is $25, costs to sell product Z are $3, the replacement cost for product Z is $21, and the normal profit margin is 40% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? O $18 $20 $21 $22
Help me with this
The following information is taken from Aden Company's records: Product Group Units Cost/Unit Market/Unit A 1 600 $ 1.00 $ 0.80 B 1 250 1.50 1.55 C 2 150 5.00 5.25 D 2 100 6.50 6.40 E 3 80 25.00 24.60 What is the correct inventory value if the company applies the lower of cost or market to the inventory as a whole? When required, round your answers to the nearest cent. Total inventory value $