Departures from Acquisition Cost Determine the proper total inventory value for each of the following items in Viking Company's ending inventory: a. Viking has 600 video games in stock. The games cost $36 each, but their year-end replacement cost is $30. Viking has been selling the games for $60, but competitors are now selling them for $50. Viking plans to drop its price to $50. Viking's normal gross profit on video games is 40%. b. Viking has 300 rolls of camera film that are past the expiration date marked on the film's box. The films cost $1.65 each and are normally sold for $3.30. New replacement films still cost $1.65. To clear out these old films, Viking will drop their selling price to $1.40. There are no related selling costs. c. Viking has 5 cameras in stock that have been used as demonstration models. The cameras cost $180 and normally sell for $280. Because these cameras are in used condition, Viking has set the selling price at $160 each. Expected selling costs are $10 per camera. New models of the camera (on order) will cost Vikings $200 and will be priced to sell at $320. a. $ 18,000 v b. $ (75) x
Departures from Acquisition Cost Determine the proper total inventory value for each of the following items in Viking Company's ending inventory: a. Viking has 600 video games in stock. The games cost $36 each, but their year-end replacement cost is $30. Viking has been selling the games for $60, but competitors are now selling them for $50. Viking plans to drop its price to $50. Viking's normal gross profit on video games is 40%. b. Viking has 300 rolls of camera film that are past the expiration date marked on the film's box. The films cost $1.65 each and are normally sold for $3.30. New replacement films still cost $1.65. To clear out these old films, Viking will drop their selling price to $1.40. There are no related selling costs. c. Viking has 5 cameras in stock that have been used as demonstration models. The cameras cost $180 and normally sell for $280. Because these cameras are in used condition, Viking has set the selling price at $160 each. Expected selling costs are $10 per camera. New models of the camera (on order) will cost Vikings $200 and will be priced to sell at $320. a. $ 18,000 v b. $ (75) x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Departures from Acquisition Cost
Determine the proper total inventory value for each of the following items in Viking Company's ending inventory:
a. Viking has 600 video games in stock. The games cost $36 each, but their year-end replacement cost is $30. Viking has been selling the games for $60, but competitors are now selling them for $50. Viking
plans to drop its price to $50. Viking's normal gross profit on video games is 40%.
b. Viking has 300 rolls of camera film that are past the expiration date marked on the film's box. The films cost $1.65 each and are normally sold for $3.30. New replacement films still cost $1.65. To clear out
these old films, Viking will drop their selling price to $1.40. There are no related selling costs.
c. Viking has 5 cameras in stock that have been used as demonstration models. The cameras cost $180 and normally sell for $280. Because these cameras are in used condition, Viking has set the selling
price at $160 each. Expected selling costs are $10 per camera. New models of the camera (on order) will cost Vikings $200 and will be priced to sell at $320.
a. $
18,000 v
b. $
(75) x
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