M7-14 Reporting Inventory under Lower of Cost or Market/Net Realizable Value LO 7-4 The Jewel Fool had the following inventory items on hand at the end of the year. Quantity Cost per Item Value per Item 10 $75 $70 50 40 60 Necklaces Bracelets Determine the lower of cost or market/net realizable value per unit and the total amount that should be reported on the balance sheet for each item of inventory.

M7-14 Reporting Inventory under Lower of Cost or Market/Net Realizable Value LO 7-4 The Jewel Fool had the following inventory items on hand at the end of the year. Quantity Cost per Item Value per Item 10 $75 $70 50 40 60 Necklaces Bracelets Determine the lower of cost or market/net realizable value per unit and the total amount that should be reported on the balance sheet for each item of inventory.

Name: M7-14 Reporting Inventory under Lower of Cost or Market/NetRealizable
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Description: M7-14 Reporting Inventory under Lower of Cost or Market/NetRealizable ValueLO 7-4The Jewel Fool had the following inventory items on hand at the end of the year.Quantity Cost per ItemValue per Item10$75$70504060NecklacesBraceletsDetermine the lower

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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Fine Leather Ltd. had the following inventory at December 31 of the current year. Per Unit Item Quantity Cost Net Realizable Value Leather blazers Model 154 20 $ 100 $ 120 Model 160 15 180 168 Model 165 10 250 260 Handbags Model 11 60 30 32 Model 12 40 45 42 Model 13 25 65 63 Required: 1. Determine the value of ending inventory that should be reported on the statement of financial position by applying the LC&NRV rule to Each item of inventory Each major category of inventory Total inventory
Lower-of-cost-or-market inventory Data on the physical inventory of Ashwood Products Company as of December 31 follow: Description InventoryQuantity Market Value per Unit(Net Realizable Value) B12 38 $57 E41 18 180 G19 33 126 L88 18 550 N94 400 7 P24 90 18 R66 8 250 T33 140 20 Z16 15 752 Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Description LastPurchasesInvoiceQuantityPurchased LastPurchasesInvoiceUnit Cost Next-to-the-LastPurchasesInvoiceQuantityPurchased Next-to-the-LastPurchasesInvoiceUnit Cost B12 30 $60 30 $59 E41 35 178 20 180 G19 20 128 25 129 L88 10 563 10 560 N94 500 8 500 7 P24 80 22 50 21 R66 5 248 4 260 T33 100 21 100 19 Z16 10 750 9 745 Required: Determine the inventory at cost and also at the lower of cost or market applied on an item-by-item basis, using the first-in, first-out method. Record the appropriate unit costs on the…
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E7-5 Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO and Weighted Average Cost [LO7-3] Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month as if it uses a periodic inventory system. Assume Oahu Kiki's records show the following for the month of January. Sales totalled 290 units. Beginning Inventory Purchase Purchase Number of goods available for sale Cost of goods available for sale Date January 1 January 15 430 January 24 225 Required: 1. Calculate the number and cost of goods available for sale. Ending inventory Units 145 2. Calculate the number of units in ending inventory. FIFO Weighted average units units Ending Cost of Inventory Goods Sold Unit Cost $9.0 9.5 12.0 3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO and (b) weighted average cost methods. (Do not round Weighted average cost per unit. Round your final…
9. Sylvia's Designs Co. had the following inventory activity during April: Unit Units 100 Cost $10 Beginning inventory Purchase (April 3) Sale (April 10) Purchase (April 18) Purchase (April 23) Sale (April 28) 50 12 80 40 14 60 15 120 Assuming Sylvia's uses a periodic LIFO cost flow assumption, ending inventory for April would be a. $2,560 b. $ 750 c. $2,310 d. $ 500
N5. Account
Required information [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Sales Units Date of Sale January 5 January 12 January 20 Total 6,000 8,000 14,000 * Includes purchase price and cost of freight. Units Purchases Unit Cost* 4,000 2,000 5,000 11,000 $8 9 11,000 units were on hand at the end of the month. Total Cost $ 48,000 72,000 $ 120,000