SE6-4 Lower of Cost or Market Method: The Claremont Company’s ending inventory is composed of 50 units that had cost $20 each and 100 units that had cost $15 each. If the company can replace all 150 units at a price of $16 each, what value should be assigned to the company’s ending inventory assuming that it applies the Lower-Cost-or-Market-Method? SE6-6 Inventory Turnover and Days’ Sales in Inventory: Glass & Company reported the following information in its recent annual report: 2015 2016 Cost of goods sold $4,000,000 $4,600,000 Beginning Inventory 900,000 860,000 Ending Inventory 860,000 640,000 Calculate the company’s inventory and days’ sales in inventory for both years.
SE6-4
Lower of Cost or Market Method:
The Claremont Company’s ending inventory is composed of 50 units that had cost $20 each and 100 units that had cost $15 each. If the company can replace all 150 units at a price of $16 each, what value should be assigned to the company’s ending inventory assuming that it applies the Lower-Cost-or-Market-Method?
SE6-6
Inventory Turnover and Days’ Sales in Inventory:
- Glass & Company reported the following information in its recent annual report:
2015 2016
Cost of goods sold $4,000,000 $4,600,000
Beginning Inventory 900,000 860,000
Ending Inventory 860,000 640,000
Calculate the company’s inventory and days’ sales in inventory for both years.
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