Ames Trading Co. has the following products in its ending inventory. Compute lower of cost or market for inventory applied separately to each product. ProductQuantityCost per UnitMarket per UnitMountain bikes..11$600$550Skateboards .13350425Gliders..26800700

Name: Ames Trading Co. has the following products in its ending inventory. C
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Description: Ames Trading Co. has the following products in its ending inventory. Compute lower of cost or market for inventory applied separately to each product. ProductQuantityCost per UnitMarket per UnitMountain bikes..11$600$550Skateboards .13350425Gliders..

Lower of cost or market method: It is the method in which the inventory is valued at lower of…

Answered: Product Quantity Cost per Unit Market…

Business

Accounting

Product Quantity Cost per Unit Market per Unit Mountain bikes.. 11 $600 $550 Skateboards . 13 350 425 Gliders.. 26 800 700

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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d The records of Cordova Corp. showed the following transactions, in the order given, relating to the major inventory item: Required: Complete the following schedule for each independent assumption. (Round unit costs to the nearest cent.) a. 1. Inventory 2. Purchase 3. Sale (at $15.20) 4. Purchase 5. Sale (at $15.20) 6. Purchase 7. Sale (at $18.20) 8. Purchase Independent Assumptions FIFO Weighted average, periodic inventory system Moving average, perpetual inventory system b. Unit Units Cost 5,600 $7.00 11,200 7.30 7,900 10,200 7.60 16,800 18,800 7.76 16,800 11,200 7.90 C. $ Ending Inventory 121,848 121,675 X 121,676 Units and Amounts Cost of Goods Sold $ 311,000 311,064 311,328 $ Gross Margin 370,200 370,136 X 369,872
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