Departures from Acquisition CostDetermine the proper total inventory value for each of the following items in Viking Company’s ending inventory:Viking has 500 video games in stock. The games cost $36 each, but their year-end net realizable value is $28. Viking has 400 rolls of photographic 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. To clear out these old films, Viking will drop their selling price to $1.30. There are no related selling costs.Viking has seven cameras in stock that have been used as demonstration models. The cameras cost $380 and normally sell for $480. Because these cameras are in used condition, Viking has set the selling price at $360 each. Expected selling costs are $15 per camera.a.Answer b.Answer c.Answer

An essential component of financial reporting and analysis is the final inventory value. It has an impact on how the cost of products sold is determined, which has an impact on measures like gross profit margin. Note-Cost or net realizable value = $36 or $28 so lower is $28Note-sold value= $3.30drop their selling price to $1.30. a$14000b$520c$2415

Answered: Departures from Acquisition Cost…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Departures from Acquisition Cost

Determine the proper total inventory value for each of the following items in Viking Company’s ending inventory:

Viking has 500 video games in stock. The games cost $36 each, but their year-end net realizable value is $28.
Viking has 400 rolls of photographic 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. To clear out these old films, Viking will drop their selling price to $1.30. There are no related selling costs.
Viking has seven cameras in stock that have been used as demonstration models. The cameras cost $380 and normally sell for $480. Because these cameras are in used condition, Viking has set the selling price at $360 each. Expected selling costs are $15 per camera.

a.	Answer
b.	Answer
c.	Answer

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