E7-11 Reporting Inventory at Lower of Cost or Market [LO 7-4]Sandals Company is preparing the annual financial statements dated December 31.Ending inventory information about the four major items stocked for regular sale follows:MarketUnit CostValueQuantityProduct Line on Hand Acquire(FIFO)Whenat Year-EndAir Flow40$ 17$ 19Blister1003028BusterCoolonite308075Dudesly352025Required:1. Compute the amount that should be reported for the ending inventory using the LCMrule applied to each item.Ending Inventory2. How will the write-down of inventory to lower of cost or market affect the company'sexpenses reported for the year ended December 31?Cost of goods sold will be increasedby

Name: E7-11 Reporting Inventory at Lower of Cost or Market [LO 7-4]Sandals
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Description: E7-11 Reporting Inventory at Lower of Cost or Market [LO 7-4]Sandals Company is preparing the annual financial statements dated December 31.Ending inventory information about the four major items stocked for regular sale follows:MarketUnit CostValue

As per the LCM method, the inventory is valued at cost or market value whichever is lower.

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E7-11 Reporting Inventory at Lower of Cost or Market [LO 7-4] Sandals Company is preparing the annual financial statements dated December 31. Ending inventory information about the four major items stocked for regular sale follows: Market Unit Cost When Product Line on Hand Acquire(FIFO) $ 17 Value Quantity at Year- End $ 19 Air Flow 40 Blister 100 30 28 Buster Coolonite 30 80 75 Dudesly 35 20 25

E7-11 Reporting Inventory at Lower of Cost or Market [LO 7-4] Sandals Company is preparing the annual financial statements dated December 31. Ending inventory information about the four major items stocked for regular sale follows: Market Unit Cost When Product Line on Hand Acquire(FIFO) $ 17 Value Quantity at Year- End $ 19 Air Flow 40 Blister 100 30 28 Buster Coolonite 30 80 75 Dudesly 35 20 25

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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间用 (T) The periodic inventory records of Synergy Prosthetics indicate the following for the current year: Date Transaction Number of Units Unit Cost Total Cost Beginning Jan. 1 Inventory 20 $22 $440 Mar. 4 Purchase 25 21 525 Jun. 9 Purchase 30 20 600 Nov. 11 Purchase 30 18 540 Total 105 $2,105 For the entire year, the company sells 81 units of inventory for $30 each. What is the cost of ending inventory under average cost method? a. $1,623.86 b. $2,430 c. $432 Od. $481.14
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Required information [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 151 July 30 October 5 October 26 Activities beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Required: Hemming uses a perpetual inventory system. Units Acquired at Cost $11.40- 235 units 360 units 435 units 135 units 1,165 units $16.40- $21.40- $26.40- $ 2,679 5,904 9,309 3,564 $ 21,456 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross profit for FIFO method and LIFO method. Units Sold at Retail 170 units 290 units 410 units 870 units $41.40 $41.40 @$41.40
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Inventory Write-Down ITT Palmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company's records: Item Units Cost Replacement Cost Net Realizable Value 1 500 $10.00 $ 9.10 $ 9.20 2 400 8.00 8.10 7.80 3 300 15.00 13.50 14.00 4 200 18.00 12.00 17.00 5 100 25.00 25.50 25.30 Required: 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent. Lower of Item Cost or NRV $ 2. 3 4 Compute the total inventory value if the lower of cost or net realizable value is applied to each individual item. $ 2. Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule. Round your answers to the nearest cent. Lower of Item Cost or Market 1 2.…
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Inventory Costing Methods-Periodic Method The following information is for the Bloom Company; the company sells just one product: 200 Feb. 11 500 May 18 400 Oct. 23 100 Units Unit Cost $10 14 16 20 Beginning Inventory Purchases: At year-end, there was an ending inventory of 340 units. Assume the use of the periodic inventory method. Calculate the value of ending inventory and the cost of goods sold for the year using (a) first-in, first-out, (b) last-in, first- out, and (c) the weighted-average cost method. Do not round until your final answers. Round your answers to the nearest dollar.