MC34 The management of Goodwill Enterprises; has been using the lower of cost and net realizable value in costing its inventory. It maintains only two items of inventory as follows: Confidence: 300 on hand; cost, P22 each; estimated sales price, P30; estimated distribution cost, P3 each; and normal profit, 10% of the sales price. Positive Attitude: 200 on hand; cost, P55 each; estimated sales price, P80; estimated distribution cost, P28; and normal profit, 20% of the sales price. Using the lower of cost and net realizable value, what are the unit inventory values for Confidence and Positive Attitude? Confidence, P27; Positive attitude, P52 Confidence, P22; Positive attitude, P52 Confidence, P22; Positive attitude, P55 Confidence, P27; Positive attitude, P55 a. b. c. d.
MC34 The management of Goodwill Enterprises; has been using the lower of cost and net realizable value in costing its inventory. It maintains only two items of inventory as follows: Confidence: 300 on hand; cost, P22 each; estimated sales price, P30; estimated distribution cost, P3 each; and normal profit, 10% of the sales price. Positive Attitude: 200 on hand; cost, P55 each; estimated sales price, P80; estimated distribution cost, P28; and normal profit, 20% of the sales price. Using the lower of cost and net realizable value, what are the unit inventory values for Confidence and Positive Attitude? Confidence, P27; Positive attitude, P52 Confidence, P22; Positive attitude, P52 Confidence, P22; Positive attitude, P55 Confidence, P27; Positive attitude, P55 a. b. c. d.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:MC34 The management of Goodwill Enterprises, has been using the lower
of cost and net realizable value in costing its inventory. It maintains
only two items of inventory as follows:
Confidence: 300 on hand; cost, P22 each; estimated sales price,
P30; estimated distribution cost, P3 each; and normal profit,
10% of the sales price.
Positive Attitude: 200 on hand; cost, P55 each; estimated sales
price, P80; estimated distribution cost, P28; and normal
profit, 20% of the sales price.
Using the lower of cost and net realizable value, what are the unit
inventory values for Confidence and Positive Attitude?
Confidence, P27; Positive attitude, P52
b.
a.
Confidence, P22; Positive attitude, P52
Confidence, P22; Positive attitude, P55
Confidence, P27; Positive attitude, P55
с.
d.
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