Please show all working The following data is available for the month of September for two items of inventory that might soon be render obsolete for a company. Inventory balances at September 1, 2023, were as follows: USB-C (TA3) Hub – 200 @ $400 ea. USB-C (TB3) Hub – 600 @ $800 ea. USB -C (TA3) HUB Date Purchases Sales Sept 5 500 @ $450 10 500 @ $450 15 400 @ $475 20 $400 @ $570 25 300 @ $500 USB -C (Tb3) HUB Date Purchases Sales Sept 10 600 @ $900 19 300 @ $950 25 900 @ $1080 28 500 @ $1000 30 600 @ $1140 a. Assume that the company uses a periodic inventory system under the FIFO method, determine the cost of ending inventory and cost of goods sold at September 30, 2023, for the individual items and in total. b. Assume that the company uses a periodic inventory system under the average cost method, determine the cost of ending inventory and cost of goods sold at September 30, 2023, for the individual items and in total. In addition to the inventory data provided, the company’s accountant has made the following projections in light of the market changes. USB- C (TA3) HUB USB (TB3) HUB Expected Unit Selling Price (net of cost to sell) $580 $1050 Costs to Complete 30 150 c. Assume that that the company applies LCNRV at the individual product level, determine the value of inventory that should be reported on the statement of financial position on September 30, 2023. b. Assume Island Solutions applies LCNRV at the major group level and for this purpose places TA3 and TB3 Hubs in one major group, determine the value of inventory that should be reported on the statement of financial position on September 30, 2023.
Please show all working
The following data is available for the month of September for two items of inventory that might
soon be render obsolete for a company.
Inventory balances at September 1, 2023, were as follows:
USB-C (TA3) Hub – 200 @ $400 ea.
USB-C (TB3) Hub – 600 @ $800 ea.
|
USB -C (TA3) HUB |
||
|
Date |
Purchases |
Sales |
|
Sept 5 |
500 @ $450 |
|
|
10 |
|
500 @ $450 |
|
15 |
400 @ $475 |
|
|
20 |
|
$400 @ $570 |
|
25 |
300 @ $500 |
|
|
USB -C (Tb3) HUB |
||
|
Date |
Purchases |
Sales |
|
Sept 10 |
600 @ $900 |
|
|
19 |
300 @ $950 |
|
|
25 |
|
900 @ $1080 |
|
28 |
500 @ $1000 |
|
|
30 |
|
600 @ $1140 |
a. Assume that the company uses a periodic inventory system under the FIFO method, determine the cost of ending inventory and cost of goods sold at September 30, 2023, for the individual items and in total.
b. Assume that the company uses a periodic inventory system under the average cost method, determine the cost of ending inventory and cost of goods sold at September 30, 2023, for the individual items and in total.
In addition to the inventory data provided, the company’s accountant has made the following projections in light of the market changes.
|
|
USB- C (TA3) HUB |
USB (TB3) HUB |
|
Expected Unit Selling Price (net of cost to sell) |
$580 |
$1050 |
|
Costs to Complete |
30 |
150 |
c. Assume that that the company applies LCNRV at the individual product level, determine the value of inventory that should be reported on the
b. Assume Island Solutions applies LCNRV at the major group level and for this purpose places TA3 and TB3 Hubs in one major group, determine the value of inventory that should be reported on the statement of financial position on September 30, 2023.
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