Question: 23A company has one unit of each of the following items in its endinginventory:Item CostMarketA$ 300$ 320B$ 350$ 360C$ 280$ 260If the lower-of-cost-or-market method is applied to the individual itemsin the above inventory, its cost is:(a) $960(b) $930(c) $910(d) $940

Step 1:In Lower of cost or market value method the company will take the cost or the market value…

Answered: Question: 23 A company has one unit of…

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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Ch 10b, HW#3 Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and (c) gross margin for A75 Company, considering the following transactions. Number Unit of Units Cost Beginning Inventory 120 $46 Purchased Mar. 2 165 48 Sold Mar. 31 for $80 per unit 83 (a) Sales Revenue (b) Cost of Goods Sold (c) Gross Margin %24 %24
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Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 14 $102 $1,428 Sept. 12 Purchases 48 105 5,040 Sept. 19 Purchases 50 106 5,300 Sept. 26 Purchases 23 23 107 2,461 Totals 135 $14,229 (a) Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to O decimal places, e.g. 125.) The ending inventory at September 30 $ FIFO $ LIFO $ AVERAGE COST (b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to O decimal places, e.g. 125.) Cost of goods sold EA FIFO +A $ LIFO AVERAGE-COST $
A2
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Question: 23 A company has one unit of each of the following items in its ending inventory: Item Cost Market A $ 300 $ 320 B $ 350 $ 360 C $ 280 $ 260 If the lower-of-cost-or-market method is applied to the individual items in the above inventory, its cost is: (a) $960 (b) $930 (c) $910 (d) $940